WORKERS, EMPLOYERS TO PAY MORE IN NEW PENSION SCHEME

MBABANE –The maximum payment for Lindlelantfongeni would have been E364 per month in 2015 if the National Social Insurance Pension Scheme Bill was passed two years ago.

This scheme’s primary objective is to ensure retired workers are entitled to a monthly income until they die.
Presently, workers contribute E95 to the Swaziland Provident Fund and the other E95 is contributed by the employer. This is because the current wage ceiling (maximum contribution/cut off point) is E1 900.

In the case of the worker contributing E364 per month to the scheme, his employer would have also paid the same amount of money. That would have effectively meant the worker contributed E728 per month, as opposed to the current rate of E190 which the worker, assisted by his employer, contributes to the provident fund on a monthly basis.

According to a final report prepared by experts and incorporated into the National Pension Draft Bill, the wage ceiling, which is a top salary or cut off point, would have been E7 280 per month in 2015.
This would have enabled the pension scheme managers to deduct five per cent of E7 280 from the worker and another five per cent of the same salary would have been contributed by the employer.

Workers earning below or above E7 280 per month would not have been affected. Say, a worker was earning E1 000 per month yet the wage ceiling (maximum contribution) stood at E7 280, he or she would have been compelled in law to pay five per cent of the E1 000, which is E50 and the other E50 would have been the responsibility of the employer to contribute.

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