The Zambia Federation Of Employers -ZFE- has petitioned the government to prioritize the review of the National Pensions Scheme Authority -NAPSA- act and adjust penalties once parliament resumes this month.
Federation Executive Director Harrington Chibanda has proposed that the much needed review to the NAPSA act on penalties and interests is done within the first quarter of 2022 in order to provide relief to employers.
Mr. Chibamba has disclosed that ZFE has engaged government through the Ministry of Labour and Social Security despite the new dawn administration committing itself to ensure reforms to the NAPSA act which in its current form, is injurious to employers and businesses in general.
He tells Phoenix News that employers are looking for an enabling environment that will facilitate local and foreign investments and result in generating the much-needed jobs for the young people without hurdles such as excessive penalties under the NAPSA Act.
Currently, under the NAPSA Act, employers who default on contributions pay penalties and interest of up to 20 percent on the principal, a punitive action that has left many businesses complaining.