.png){kind=small}
What Is NAPSA?
The National Pension Scheme Authority (NAPSA) is Zambia’s mandatory social security scheme. Every employer in Zambia is legally required to register with NAPSA and make monthly contributions for all employees. NAPSA provides:
- Retirement benefits — paid to members who reach retirement age (currently 55 for early retirement, 60 for normal)
- Invalidity benefits — for members who become permanently incapacitated
- Funeral grants — a lump sum paid on the death of a member
- Survivors’ benefits — paid to dependants of a deceased member
NAPSA is governed by the National Pension Scheme Act No. 40 of 1996 and is compulsory for all employers and employees in Zambia.
What Is NHIMA?
The National Health Insurance Management Authority (NHIMA) is Zambia’s mandatory health insurance scheme, established under the National Health Insurance Act No. 2 of 2018. It provides:
- Access to healthcare services at accredited facilities across Zambia
- Coverage for employees and their dependants (spouse and up to 5 children under 18)
- Both inpatient and outpatient services, including consultations, diagnostics, surgery, and pharmaceuticals
NHIMA became operational in 2020 and is now mandatory for all formal sector employers.
2026 Contribution Rates
| Contribution | Employee | Employer | Cap | Total |
|---|---|---|---|---|
| NAPSA | 5% of basic salary | 5% of basic salary | K1,861.80/month per side | 10% |
| NHIMA | 1% of gross salary | 1% of gross salary | No cap | 2% |
| SDL | — | 0.5% of total payroll | No cap | 0.5% |
NAPSA Cap Explained
The NAPSA contribution is calculated on basic salary up to the insurable earnings ceiling, which is K37,236 per month for 2026. This means:
- Maximum employee NAPSA contribution: K37,236 × 5% = K1,861.80/month
- Maximum employer NAPSA contribution: K37,236 × 5% = K1,861.80/month
- For employees earning above K37,236/month, NAPSA contributions are capped — you do not pay more
NHIMA Has No Cap
Unlike NAPSA, NHIMA contributions are calculated on the full gross salary with no ceiling. An employee earning K100,000/month pays K1,000 in NHIMA employee contributions, and the employer pays an additional K1,000.
How to Register as an Employer with NAPSA
Step 1: Gather Required Documents
- PACRA Certificate of Incorporation (or business registration for sole traders)
- ZRA TPIN certificate
- NRC or passport for all directors
- Proof of business address
- List of all employees with NRC numbers, dates of birth, and employment start dates
Step 2: Visit a NAPSA Office or Apply Online
NAPSA registration can be done at any NAPSA provincial office or through the NAPSA online portal. You will complete:
- Employer registration form (NPS Form 1)
- Employee registration forms (NPS Form 2) for each employee
Step 3: Receive Your NAPSA Employer Number
Once registered, NAPSA issues a unique employer registration number. This number is used on all monthly remittance forms and correspondence.
Step 4: Register Each Employee
Every employee must be individually registered with NAPSA and issued a NAPSA membership number. If an employee already has a NAPSA number from a previous employer, that same number carries over — do not create a duplicate.
Timeline: Registration is typically processed within 5–10 business days.
How to Register with NHIMA
The NHIMA registration process mirrors NAPSA:
- Employer registration — complete the NHIMA employer registration form with company details, TPIN, and PACRA number
- Employee registration — register each employee and their dependants (spouse and children under 18)
- Receive NHIMA cards — employees receive NHIMA membership cards for use at accredited health facilities
NHIMA registration can be done at any NHIMA office or through their online portal.
Monthly Remittance Process
NAPSA Monthly Filing
- Calculate NAPSA contributions for all employees (5% employee + 5% employer, per employee)
- Complete the NPS Schedule of Contributions listing all employees, their basic salaries, and contribution amounts
- Submit the schedule and payment to NAPSA by the 10th of the following month
- Payment methods: bank transfer, direct deposit, or mobile money
NHIMA Monthly Filing
- Calculate NHIMA contributions for all employees (1% employee + 1% employer)
- Submit the NHIMA contribution schedule and payment by the end of the following month
- Payment methods: bank transfer or direct deposit
Filing Calendar
| Obligation | Deadline | Penalty for Late Payment |
|---|---|---|
| NAPSA monthly contributions | 10th of following month | 10% of outstanding amount + BoZ lending rate interest |
| NHIMA monthly contributions | End of following month | Penalties as prescribed by NHIMA regulations |
| NAPSA annual return | 31 March of following year | Administrative penalties |
NAPSA for Part-Time and Casual Workers
A common misconception is that casual and part-time workers are exempt from NAPSA. They are not. The National Pension Scheme Act covers all employees in Zambia, regardless of:
- Employment type (permanent, contract, casual, temporary)
- Hours worked (full-time or part-time)
- Duration of employment
- Payment method (salary, wages, daily rate)
The only practical exception is truly self-employed individuals with no employer-employee relationship. Domestic workers in private households have specific provisions but are increasingly being brought into the formal scheme.
If you pay someone a wage or salary and direct their work, they are your employee and must be registered with NAPSA.
Common NAPSA & NHIMA Compliance Mistakes
1. Not Registering Within 30 Days of Hiring
Employers must register with both NAPSA and NHIMA within 30 days of hiring their first employee. Delayed registration means back-contributions with penalties.
2. Calculating NAPSA on Gross Instead of Basic Salary
NAPSA is calculated on basic salary only — not gross salary. Allowances, overtime, bonuses, and commissions are generally excluded. NHIMA, however, is calculated on gross salary including allowances.
3. Ignoring the NAPSA Cap
For high-earning employees, the NAPSA contribution must be capped at K1,861.80 per side. Overpaying is a common error that creates reconciliation problems.
4. Not Updating Employee Records
When employees join, leave, or change salary, NAPSA and NHIMA records must be updated. Failure to deregister departed employees means you continue paying contributions for people no longer in your employ.
5. Missing the 10th-of-the-Month NAPSA Deadline
The NAPSA deadline is the 10th, not the end of the month. The 10% penalty is calculated on the full outstanding amount and applied immediately — there is no grace period.
NAPSA Benefits Your Employees Should Know
Employees often see NAPSA as a deduction, not a benefit. As an employer, it helps to communicate what NAPSA provides:
- Retirement lump sum: A lump sum payment at retirement based on total contributions and years of service
- Monthly pension: Available for members with 180+ months (15 years) of contributions
- Invalidity pension: Payable if a member becomes permanently incapacitated before retirement age
- Funeral grant: K14,000 (2026 rate) payable on death of a member
- Survivors’ benefit: Ongoing payments to the spouse and children of a deceased member
Employees can check their NAPSA contribution records and projected benefits on the NAPSA member portal or at any NAPSA office.
Let M&J manage your NAPSA and NHIMA compliance.
We handle employer registration, monthly remittances, annual returns, and ensure your payroll deductions are always correct. Free initial consultation.
Frequently Asked Questions
What is the NAPSA contribution rate in Zambia for 2026?
The NAPSA contribution rate is 5% from the employee and 5% from the employer, totalling 10% of the employee's basic salary. Both contributions are capped at K1,861.80 per month each, based on the insurable earnings ceiling of K37,236 per month.
What is the NHIMA contribution rate in Zambia?
NHIMA contributions are 1% from the employee and 1% from the employer, totalling 2% of the employee's gross salary. Unlike NAPSA, there is no cap on NHIMA contributions.
When must NAPSA contributions be remitted?
NAPSA contributions must be remitted by the 10th of the month following the payroll period. Late remittance attracts a penalty of 10% of the outstanding amount plus interest at the Bank of Zambia lending rate.
Do I need to register casual workers with NAPSA?
Yes. All employees — including casual, temporary, and part-time workers — must be registered with NAPSA if they are paid a salary or wage. The only exemptions are self-employed individuals who are not required (but may voluntarily contribute) and domestic workers in certain circumstances.
Can foreign employees contribute to NAPSA?
Yes. Foreign nationals employed in Zambia must contribute to NAPSA on the same basis as Zambian employees. However, if a bilateral social security agreement exists between Zambia and the employee's home country, they may be exempt. Currently, Zambia has limited bilateral agreements, so most foreign employees will contribute.
What happens if my company doesn't register with NAPSA?
Failure to register with NAPSA is an offence under the National Pension Scheme Act. NAPSA can conduct audits, assess back-contributions with penalties and interest for the entire period of non-registration, and refer the matter for prosecution.