The Social Security Commission (SSC) has amended the Employment Compensation Act and Social Security Act, effective 1 March 2025.
The changes, as detailed in Government Notice No. 8461 dated 1 October 2024, include adjustments to the wage ceilings for maternity, sick leave and death (MSD) benefits.
The current maximum basic wage ceiling will increase from N$9,000 to N$11,000, while the minimum wage ceiling will rise from N$300 to N$500 per month.
The contribution rate remains unchanged at 1.8% of the employee’s basic wage, shared equally between employers and employees.
“The Social Security Commission announces the following amendments to the Employment Compensation Act and Social Security Act, as per Government Notice No. 8461 dated 01 October 2024, effective 01 March 2025,” a notice by the commission read.
This comes as last year, SSC Chief Executive Officer Milka Mungunda reported that the commission was looking into increasing membership fees in order to ensure that the fund is sustainable.
A key focus of the increased contributions will be improving maternity benefits. Currently, women earning more than N$15,000 per month are capped at a maximum benefit of N$15,000 during maternity leave.
She also said that the SSC also plans to increase the funeral benefit, which is currently N$4,500.
Mungunda also said that in 2024, the MSD Fund reported payouts of N$9.3 million 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.
Other SSC-administered funds have also supported members, including N$37.7 million in funeral benefits for 8,000 claims and N$1.2 million in bursaries through the Development Fund.
