News FlashesJuly 5, 2024

News Flash 5 July 2024 – ZIMBABWE – Currency symbol code and new NSSA

JULY 2024 – ZIMBABWE
CURRENCY SYMBOL CODE AND NEW NSSA GUIDELINES
It is important that employers note the following:

Zimbabwe announces the new currency symbol code
The Reserve Bank of Zimbabwe announced the assignment of Zimbabwe’s new currency code in a news release on 1 July 2024. A unique three-letter acronym known as a currency code is used on international trading platforms to identify a nation’s currency.

Following the Monetary Policy Statement pronouncement on 5 April 2024 introducing the Zimbabwe Gold (ZiG) currency, Zimbabwe’s request to modify the code has been authorised by the International Standard Organization’s (ISO) 4217 Committee on Currency. With effect from 25 June 2024, the Zimbabwe Gold (ZiG) currency was assigned the currency code ZWG in place of ZWL.

To view the press statement, follow the link.

New NSSA guidelines and contributions
With effect from 1 June 2024, under Statutory Instrument (SI) 99 of 2024, the National Social Security Authority (NSSA) has announced a significant revision to the NSSA Limit. This change aims to provide employees with better coverage and align the NSSA Limit with the current economic conditions.

The maximum insurable earnings, or NSSA limit, was previously fixed at ZWG 5,010.83. However, under the new legislation, the NSSA limit has been moved to a USD-based system with a new monthly threshold of USD 700. With the fluctuating exchange rate between the US dollar (USD) and Zimbabwe Gold (ZWG), this change makes calculations simpler and more flexible.

However, as stipulated in SI 169 of 2021, the contributions are still due in the same currency that the employees’ compensation is paid in.

Employers with multicurrency or USD-only payroll systems can now use the USD 700 figure directly for both the NSSA limit and the contribution threshold (4.5% of the USD 700 limit). This simplifies the calculation process and eliminates the need for constant exchange rate conversions.

Employers with payrolls exclusively denominated in Zimbabwe Gold (ZWG), will need to multiply the NSSA limit of USD 700 by the official exchange rate to determine the monthly threshold and contributions for each period. This ensures your NSSA calculations remain accurate and comply with the new regulations.

To view the different statutory instruments, follow the link

PLEASE NOTE:
The implementation of this change requires an update of the payroll system parameters. If not done, you may incur penalties and interest. If you are unsure of how to make the change, please contact your consultant for assistance.

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