Namibia’s Social Security Commission (SSC) is planning to increase member contributions in 2025 to ensure the sustainability of social security benefits.
According to SSC’s Chief Executive Officer, Milka Mungunda, the decision is expected to be finalised once an actuarial report is completed, determining the precise rate and amount of the contribution increase.
Currently, members contribute a minimum of N$2.70 per month and a maximum of N$81, with self-employed individuals contributing 1.8% of their basic income.
“We’ve seen strong performance from our robust investment strategy, and this has allowed us to improve benefits like maternity leave without increasing contributions. Unfortunately, this is no longer sustainable, and we will need to raise contributions next year to continue enhancing benefits for our members,” said Mungunda.
Mungunda said while the increase is necessary, it will not be a significant financial burden on members.
“In terms of percentage and the amount of increase, we are currently awaiting the actuarial report from the actuaries to inform us of the rates and numbers. However, I can guarantee that it will not be by a lot. The report is expected by the end of October,” she told The Brief.
One of the main areas the increased contributions will support is improved maternity benefits.
The CEO said SSC aims to enhance its maternity benefit scheme without majorly adjusting member contributions.
Currently, there is a ceiling on maternity leave payments, with women earning over N$15,000 receiving a maximum benefit of N$15,000, even if their actual salary is higher.
“Our goal is to move towards paying 100% of a woman’s salary during maternity leave. This won’t happen all at once but incrementally. We want mothers earning higher salaries to receive a more substantial portion of their income while on maternity leave, instead of being capped at a lower amount,” explained Mungunda.
She further noted the possibility of extending maternity leave from the current three months to six months, in line with international standards.
“There are talks about extending maternity leave to six months, as recommended by the International Labour Organisation (ILO). However, we must carefully consider the financial and economic implications before making any final decisions,” she said.
The SSC is also looking at revising funeral benefits. Currently, the scheme offers a funeral benefit of N$4,500, which is provided in partnership with funeral undertakers.
Mungunda acknowledged that this amount may no longer be sufficient to cover the rising costs of funerals.
“We are looking at ways to revise and increase the funeral benefit to ensure it meets current demands. Funerals have become quite expensive, and we want to ensure that all Namibians have access to a dignified send-off for their loved ones,” she stated.
She further emphasised that the SSC’s role in administering social protection schemes, such as maternity and funeral benefits, is part of its broader mandate to provide essential social protection to Namibians.
The commission aims to align its services with international best practices while balancing the need to maintain financial sustainability.
“We are committed to improving social protection for all members, but this requires careful planning and, unfortunately, increased contributions from next year. I want to assure our members that these increases are being introduced to ensure we can continue delivering the highest possible benefits to them,” she said.
This comes as for the past year Maternity, Sick & Death Fund reported N$9.3 million paid out for death claims, N$53.9 million for disability and retirement, N$205 million for maternity, and N$23.9 million for sick leave claims.
The Employee Compensation Fund provided N$8.6 million in pension payments, N$3.4 million for medical expenses, and N$15.2 million for temporary disability claims.
The Development Fund disbursed N$1.2 million in bursary payments and N$123,700 for loans.
Finally, the Funeral Benefit Scheme recorded N$37.7 million in payments, 8,000 claims, and 107 registered undertakers.
