AUGUST 2026 – NAMIBIA
AMENDMENT TO THE SOCIAL SECURITY ACT
It is important that employers note the following:
Social Security MSD contribution ceiling increase effective 1 September 2026
The Social Security Commission (SSC) has confirmed that the amended contribution ceilings for the Maternity, Sick Leave and Death Benefit Fund (MSD) will be implemented from 1 September 2026. The amendment was published in Government Gazette No. 8975 Notice No. 236 on 15 July 2026.
The Gazette lists 1 March 2026 as the effective date. However, the SSC has clarified that, due to delayed gazetting, the increase will only be implemented from 1 September 2026. Employers should therefore apply the revised threshold from the September 2026 payroll cycle.
The maximum basic salary used to calculate MSD contributions will increase from N$11,000 to N$12,500 per month with effect from 1 September 2026. The minimum basic salary threshold remains N$500 per month.
The contribution rate remains unchanged at:
- 0.9% payable by the employee
- 0.9% payable by the employer
The amended regulations also provide for further increases to the maximum basic salary ceiling as follows:
To view the government notice, 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.
