Most Namibian government employees want the existing Payroll Deduction Management System (PDMS) to be modernised rather than scrapped, according to a new national survey conducted by Fin Fit Investments.
Findings from the first phase of the Nationwide Online Survey on Government Employees’ Perceptions and Satisfaction with the PDMS show that 79% of respondents support keeping the system either in its current form or with improvements, while only 21% favour its complete cancellation.
The PDMS, which facilitates automatic payroll deductions for personal loans, insurance premiums and union fees, is set to be phased out by the Ministry of Finance by the end of November 2025, in favour of bank debit orders.
Survey results indicate that most employees value the system’s reliability and structure but want greater transparency, flexibility and digital access.
“Government employees assign high value to the reliability and structure of the system. They however also desire more flexibility, transparency and support in managing their financial matters,” said Francois Brand, Co-Founder and Developer at Fin Fit Investments.
According to the survey, 72% of participants believe the PDMS helps them avoid excessive debt, while 70% say it simplifies monthly financial management.
However, many respondents described the process of changing or stopping deductions as slow and bureaucratic, reinforcing calls for digital reform.
Concerns were also raised about the impact of removing the system entirely. About 83% of employees expect more difficulty keeping up with payments under debit orders, and 71% fear higher bank fees will make repayments less affordable.
Brand said any transition should be gradual and supported by clear communication and governance to protect consumers.
“Transitions and reform from payroll deductions to debit orders should be gradual, well-communicated and supported by clear governance and administrative guidance,” he said.
The report recommends that government digitise and streamline the PDMS instead of abolishing it. Suggested reforms include introducing self-service portals, automated notifications for deduction changes, and partnerships with banks to reduce debit-order fees.
The findings also highlight growing concern over household indebtedness, with 63% of respondents calling for stronger affordability checks before loans are approved. The report recommends that the Bank of Namibia and NAMFISA conduct regular audits and enforce affordability assessments to address rising debt levels, estimated at N$7.6 billion in cash-loan obligations.
Brand added that a reformed PDMS could coexist with debit orders while maintaining safeguards against over-indebtedness.
“Instead of a complete removal, the system could be reformed while modernising into a digital platform that maintains its protective functions while improving efficiency and transparency,” he said.
At the launch of the report, Economist John Steytler said the PDMS has played a key role in promoting financial inclusion by giving government employees access to credit and insurance while lowering default risks.
However, he cautioned that automatic deductions should not replace financial awareness.
“Access alone does not equal empowerment,” he said.
“True inclusion requires financial capability, where people understand and manage their money confidently, not just gain entry into the formal financial system.”
Steytler noted that most employees view the PDMS as convenient and trustworthy but want more control and modernisation rather than its removal.
He urged policymakers to balance access, capability and protection as Namibia transitions to digital financial systems.
The survey results come as the Ministry of Finance prepares to discontinue all discretionary payroll deductions for government employees, with the PDMS scheduled to shut down on 30 November 2025.
A directive issued on 28 August informed employees and financial institutions that the government’s contract with Avril Payment Solutions, the operator of the system, will not be renewed.
