IT IS the responsibility of every employer to register his or her employees with National Pension Scheme Authority (NAPSA) , but some employers don’t register their employees with the institution. This is wrong because it is an abrogation of the Zambian labour laws.
Most people run their business entities as small and medium enterprises (SMEs) and some of them face some challenges. These challenges can be attributed to high competition, low demand for their goods and services, and high operational costs.
This leads to low sales, which ultimately affect the profitability of these enterprises.
If the employees’s gross salary is K1,000, the employee contributes five percent of his or her gross salary and the employer also contributes five percent of this amount.
In this case, the employee contributes K50.00 and the employer also contributes the same amount. This means that K100.00 is the total amount paid as NAPSA returns on behalf of the employee until the worker reaches retirement age, which is 65.
Some employers may not register their employees to NAPSA and in some cases, evade paying the returns for their workers for various reasons. It can either be deliberate or due to some business challenges as alluded to earlier.
In light of the aforegone, NAPSA should emulate Zambia Revenue Authority (ZRA), which provided a tax amnesty on the outstanding principal, coupled with interest and penalties of defaulting taxpayers.
The move by ZRA to waive interest and penalties has helped the institution raise the substantial amount of money, well above K136 million.
At the same time, the move has provided some form of relief to the entrepreneurs so that the latter can sustain their businesses and ensure continuity of these entities.
It is high time NAPSA waived interest and penalties on outstanding returns. The amnesty, if provided to defaulting employers, would help NAPSA recover colossal sums of money.