CRS News Flash 19 January 2024 – AFRICAN COUNTRIES – Recent legislative changes for 2024

RECENT LEGISLATIVE CHANGES FOR 2024
It is important that employers note the following:

BOTSWANA
Adjustment of minimum wages for 2024

The Ministry of Planning and Economic Development issued Decree No. 90 of 2023 on 11 December 2023, which introduces an increase in the minimum salary of private sector employees.

As of 1 January 2024, the minimum salary for private sector employees shall be EGP3,500 instead of EGP3,000.

The National Wages Council has also approved an increase in the annual periodic bonus for workers in the private sector of no less than 3% of the insurance subscription wage, with a minimum of EGP200.

To view the press release, follow the link.

Social insurance increase

As the Eswatini Revenue Authority tax year runs from July to June and the ENPF limits are applied from January to December, with an annual increase in January every tax year, the tax constant should be changed twice a year, i.e. in January and again in July.

The Minister for Labour and Social Security approved the increase as contained in Legal Notice No. 140 of 2020. The notice states the statutory contributions from 2020 to 2024.

In line with Section 113 (1) (a) of the Labour Act, 2003 (Act 651), the National Tripartite Committee (NTC) has concluded negotiations on the determination of the 2024 National Daily Minimum Wage (NDMW) at its meeting held on Monday, 13 November 2023.

The NDMW has been increased to GHs18.15 a day, effective January 2024. This translates to a monthly wage of GHs490.05 (assuming 27 working days in a month).

To view the official announcement by the NTC, follow the link

Tax changes

On 15 November 2023 the 2024 Budget Statement was delivered by Ghana’s Minister for Finance and Economic Planning. The government has made various proposals on taxation in the 2024 budget.

After the passage of the tax bills by Parliament, the President assented to the bills on 29 December 2023, and they were duly gazetted on the same date for entry into force. The Income Tax (Amendment) (No 2) Act 2023, (Act 1111) came into force on 30 December 2023.

The tax-free band of the resident individual income tax schedule has been amended to correspond to the new NDMW.

Should this error be corrected by another amendment of the Act, an update will be released.

To view Act 1111, follow the link.

Social Security and National Insurance Trust (SSNIT) contributions increase

Statutory contributions towards retirement are categorised under a three-tiered scheme as follows:

·        First tier – a mandatory basic social security scheme;

·        Second tier – a mandatory fully funded and privately managed occupational scheme; and

·        Third tier – a voluntary fully funded and privately managed provident fund and personal pension scheme.

SSNIT and the National Pension Authority (NPA) have issued a public notice to inform employers that the monthly salary cap for Tier 1 has been increased from GHs42,000.00 to GHs52,000.00, effective 1 January 2024.

From 1 January 2024 the maximum and minimum contributions payable to SSNIT will be GHs7,020 and GHs66.16 respectively.

To view the 2024 budget speech, follow the link. To view the Finance Act, 2023, click here.

Pension and Other Benefits Scheme (POBS) contributions

The National Social Security Authority (NSSA) has published the maximum amount for the POBS monthly contributions insurable earnings ceiling applicable for January, February and March 2024.

The ceiling limit remains unchanged at ZWL$ 2,414,896.00.

For both employer and employee, the maximum deduction remains ZWL$ 108,670.32 (4.5% X 2,414,896).