FEBRUARY 2025 – NAMIBIA SOCIAL SECURITY AND EMPLOYEES COMPENSATION FUND
It is important that employers note the following:
Social Security and Employees Compensation Fund changes
Government Gazette No. 8461 dated 1 October 2024 announced amendments to the Employment Compensation Act and Social Security Act, effective 1 March 2025.
Under Notice No. 275, the Ministry of Labour, Industrial Relations and Employment Creation published the minimum and maximum basic salary ceilings for contributions to maternity leave, sick leave and death benefits.
In addition, under Notice No. 277, the Ministry of Labour, Industrial Relations and Employment Creation published the income ceiling that determines who qualifies as an employee for Employee Compensation Fund (ECF) purposes.
Maternity Leave, Sick Leave and Death Benefit (MSD)
Effective 1 March 2025, the Ministry of Labour, Industrial Relations and Employment Creation has increased the minimum and maximum basic salary ceilings for contributions to maternity leave, sick leave and death benefits.
The salary ceiling must be adjusted as follows:
- The existing maximum basic salary ceiling of N$ 9,000.00 will be raised to N$ 11,000.00 per month.
- The minimum salary ceiling will increase from N$ 300.00 to N$ 500.00 per month.
The contribution rate will remain at 1.8% of the employee’s basic salary, with the employer and employee each contributing 0.9%, based on the revised salary ceiling of N$ 11,000.00.
Employees’ Compensation Fund (ECF)
Effective 1 March 2025, the Ministry of Labour, Industrial Relations and Employment Creation has increased the income ceiling that determines who qualifies as an employee for ECF purposes.
The income threshold for determining employee eligibility for ECF purposes must be increased from the current N$ 81,300.00 per annum to N$ 101,625.00 per annum.
Employees earning above this limit may still be eligible for coverage under the fund through a special arrangement with the commission.
To view the government notices, follow the link.
