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50 Companies Fail To Remit Pension Contributions

50 Companies Fail To Remit Pension Contributions

More than 50 companies are deducting amounts from their employees’ salaries and wages but failing to pay the money to the relevant retirement funds.

The pension scheme members will inevitably receive reduced or no benefits at all, yet their earnings are being deducted.

This comes as the pension contribution arrears hit ZWL$5.3 billion at the end of March this year.

The Insurance and Pensions Commission (IPEC) on Wednesday named 50 defaulting companies that have been deducting pension contributions from employees but failing to remit to respective pension funds. IPEC said:

IPEC has noted with concern, the continued failure by some sponsoring employers to remit pension contributions to their respective pension funds, to the detriment of pension scheme members, who end up receiving reduced or no benefits, when they become due.

IPEC has been receiving complaints from pension scheme members who have received reduced or no benefits owing to failure by their sponsoring employers to remit pension contributions after deducting the same.

IPEC calls upon trustees of the affected pension funds to put measures in place to ensure the said employers remit outstanding contributions, for the benefit of their pension scheme members.

In addition, labour organisations are urged to engage the employers who are not remitting pension contributions for the purposes of protecting members against old-age poverty.

The 50 defaulting companies named by IPEC include the Zimbabwe Revenue Authority (ZIMRA), OK Zimbabwe, FBC Holdings, ZESA Holdings and its subsidiaries, the National Railways of Zimbabwe, Hwange Colliery Company Limited, Zimplats, RioZim, Harare City Council, Bulawayo and Chitungwiza City Councils, among others.

The law compels all companies to remit contributions into the pension fund within 14 days from the end of the calendar month to which the pension contribution relates.

More: Business Times

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Tateguru 3 weeks ago

This is where ZACC is needed most.

Tkt 3 weeks ago

I knew @NRZ will be found wanting. All these institutions the reason why they want to fire employees before or closer to their retirement periods is that they know they wouldn't have been releasivthe employee's dues to the NSSA so a lot of questions will surface at a time when NSSA has to make payments

Yes contract employees have their wages deducted pension contributions bcoz in the event of any injury while at work you need compensation!!!

Mablango 3 weeks ago

CMED haiyendese kubva 2002

Fari 3 weeks ago

Vamwe takadzimara kusiya mabasa but taingobatirwa nassa asi tisina manassa number.

Dhuterere 3 weeks ago

contract workers vanobatirwa pension here??

Asalif 3 weeks ago

can they contribute remittances when they most their employees are contractors??

RISCOM 3 weeks ago

Ko Zisco iri kuwinza here?

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