Martin Endjala
The Social Security Commission (SSC) has announced that it will increase maternity leave, sick leave, and other benefits as of 1 March.
The commission announced this in a notice issued on Friday.
This means that registered members will now have to pay more for their social security monthly contribution.
It also means that the commission will have more funds to pay out to all members, especially for retirement, sick leave and maternity leave benefits.
Last year there were calls to increase the set benefits.
As of 1 March, the maximum basic wage ceiling, which is the limit to how much an individual will earn, will increase from N$9000 to N$11 000.
Contribution rates will, however, remain the same at 1.8% of an employee’s basic wage shared equally between employees and employers at 0.9%.
The minimum wage ceiling, which is the highest amount an employer can legally pay an employee, has increased from N$300 to N$500 per month.
Registered employers are advised to adjust monthly contributions accordingly.
According to the notice, this is in line with the amendments to the Employment Compensation Act and Social Security Act no. 34 of 1994, as per government notice 8461 dated 1 October 2024.
SSC chief executive officer Milka Mungunda told the Windhoek Observer over the weekend that the increase in contribution is a result of the commission’s strategy plan to improve benefits for its clients.
Last year, Mungunda announced plans to increase members’ contributions.
“Effective from 1 March 2025, we will have to reconsider the increasing contribution for maternity benefits,” she hinted.
According to experts, by raising the contribution limits, more money will be available for things like maternity leave payments and other benefits.
This will guarantee that the social security system covers more workers.
According to some, the minimum salary increase further ensures that even low-wage earners contribute to the system and are eligible for benefits.
These changes also mean that employers will need to adjust how they calculate and deduct social security contributions from their employees’ salaries.
The benefits, like maternity leave or death benefits, will not change significantly.
Additionally, both employers and employees will contribute more, but it also means more people will be covered by the system and more money will be available for social security benefits.
Between 2023 and 2024, the commission paid out N$302 million in maternity, sick leave, death, and retirement benefits to more than 31 718 beneficiaries.
