Zambia

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1965 (provident fund).

Current law: 1996 (pension scheme), implemented in 2000.

Type of program: Social insurance system.

Coverage

Employed persons, including agricultural workers, domestic servants in urban areas, apprentices, and all public-sector and local government employees who began service on or after February 1, 2000.

Exclusions: Workers younger than age 16, older than age 55, or earning less than K15,000 a month; armed forces personnel.

Voluntary coverage for the self-employed and some categories of informal-sector workers who were previously covered for at least 60 months.

Special system for public-sector and local government employees who began service before February 1, 2000.

Source of Funds

Insured person: 5% of earnings; voluntary contributors, 10% of earnings.

The maximum monthly earnings for contribution purposes are four times national average monthly earnings.

Self-employed person: 10% of earnings.

The maximum monthly earnings for contribution purposes are four times national average monthly earnings.

Employer: 5% of payroll.

The maximum monthly earnings for contribution purposes are four times national average monthly earnings.

Government: None; contributes as an employer.

Qualifying Conditions

Old-age pension: Age 55 with at least 180 contributions. Retirement from regular employment is necessary.

Early pension: From age 50 with at least 180 paid contributions and if the resulting reduced pension is at least equal to the minimum pension. Retirement from regular employment is necessary.

Old-age settlement: Payable if the insured does not satisfy the qualifying conditions for the old-age pension.

Disability pension: Permanent incapacity for any work as the result of a physical or mental disability and with at least 60 contributions, including 12 in the 36 months before the onset of disability.

The disability is assessed by a medical board appointed by the Minister of Labor and Social Security.

Disability settlement: Payable if the insured does not satisfy the qualifying conditions for the disability pension.

Survivor pension: The deceased had at least 60 contributions or was receiving an old-age or disability pension at the time of death.

Eligible survivors include the spouse and children younger than age 18 (age 25 if a student, no limit if disabled).

A surviving spouse caring for one or more of the deceased's children is eligible for a pension until death or remarriage. If the surviving spouse is younger than age 45 and without children by the deceased, a limited pension is payable for 2 years.

Survivor settlement: Payable to survivors if the deceased did not satisfy the qualifying conditions for a pension.

Funeral grant: Payable if the deceased had at least 12 months of contributions in the 36 months before death.

All benefits are payable abroad only if there is a reciprocal agreement.

Old-Age Benefits

Old-age pension: The monthly pension is based on the insured's average adjusted monthly earnings multiplied by the number of monthly contributions.

The minimum monthly pension is 20% of monthly national average earnings.

The maximum monthly pension is equal to 40% of the insured's average adjusted monthly earnings.

Early pension: A reduced pension is paid. The minimum monthly early pension is 20% of national average monthly earnings.

Benefit adjustment: Pensions are adjusted annually according to the growth in wages.

Old-age settlement: The total adjusted employee and employer contributions plus accrued interest.

Permanent Disability Benefits

Disability pension: The monthly calculated pension or the minimum pension (whichever is greater), plus compensation for lost work-years.

Disability settlement: The total adjusted employee and employer contributions plus accrued interest.

Survivor Benefits

Survivor pension: If the insured was employed at the time of death, the pension is equal to the monthly calculated pension or the minimum pension (whichever is greater), plus compensation for lost work-years. If the insured was receiving an old-age or disability pension, the pension is converted to a survivor pension.

When there is more than one eligible survivor, the pension is split according to the schedule in law.

The minimum monthly pension is 20% of national average monthly earnings.

Survivor settlement: The total adjusted employee and employer contributions plus accrued interest.

Funeral grant: Ten times the minimum pension is payable to the survivor. In the absence of a survivor, the grant is payable to the person who pays for the funeral.

Administrative Organization

Ministry of Labor and Social Security provides general supervision.

Managed by a tripartite board of trustees and a director general, the National Pension Scheme Authority administers the program through two regional offices and 22 district offices.

Sickness and Maternity

Regulatory Framework

First law: 1973.

Current law: 1994.

Type of program: Medical benefits only.

No statutory cash benefits are provided. Women who qualified for maternity benefits under the repealed provident fund act can claim maternity benefits under the repealed act.

Workers' Medical Benefits

Medical care is available to all citizens in government hospitals, clinics, and rural health centers at low cost. Fee-paying medical services have been introduced in selected medical institutions.

Dependents' Medical Benefits

Medical care is available to all citizens in government hospitals, clinics, and rural health centers at low cost. Fee-paying medical services have been introduced in selected medical institutions.

Administrative Organization

Ministry of Labor and Social Security provides general supervision.

Work Injury

Regulatory Framework

First laws: 1929 (employer liability) and 1963 (compulsory insurance).

Current law: 1994.

Type of program: Employer-liability system, involving compulsory insurance with a public carrier.

Coverage

Employed persons, including casual workers, domestic servants, apprentices, and public-sector employees not covered by the special system.

Special system for public-sector employees.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: Total cost, met through contributions fixed annually according to the assessed degree of risk.

Government: None; contributes as an employer on behalf of covered employees.

The maximum annual earnings for contribution purposes are K3,000,000.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying period.

Temporary Disability Benefits

With an assessed degree of disability of 10% or less, the benefit is equal to 50% of monthly insurable earnings. The benefit is payable for a maximum of 18 months; may be extended to 24 months. Medical certification is necessary.

The maximum monthly earnings for benefit calculation purposes are K250,000.

The minimum and maximum benefits vary according to the assessed degree of disability.

The degree of disability is assessed by government hospitals or private clinics. Occupational diseases are assessed annually. Work injuries are assessed when the claim is made; reassessment is possible if the worker's medical condition changes.

Benefit adjustment: Benefits are adjusted periodically according to changes in the cost of living.

Permanent Disability Benefits

Permanent disability pension: The pension is equal to 50% of monthly insurable earnings at the onset of disability times the assessed degree of disability.

The maximum monthly earnings for benefit calculation purposes are K250,000.

The minimum pension is paid for an assessed degree of permanent disability of 11%.

The maximum pension is paid for a permanent total disability of 100%.

Constant-attendance allowance: Payable according to the assessed degree of disability.

Partial disability: A lump sum is paid if the total benefit payment is less than K31,000 or if the assessed degree of disability is 10% or less.

The degree of disability is assessed by a government institution or private clinic. Occupational diseases are assessed annually. Work injuries are assessed at the start of the claim; reassessment is possible if the worker's medical condition changes.

Benefit adjustment: Periodic adjustment of pensions for changes in the cost of living.

Workers' Medical Benefits

Medical benefits are determined by the Minister of Labor and Social Security through a statutory body.

There is no maximum duration for benefits.

Survivor Benefits

Survivor pension: 80% of the deceased's disability pension is paid to a widow or a disabled widower. The pension is paid monthly.

The widow(er) pension ceases on remarriage.

Remarriage settlement: A lump sum equal to 24 months' pension.

Orphan's pension: 15% of the deceased's disability pension is paid for the first orphan (30% for a full orphan) and 5% for each additional orphan (10% for each additional full orphan) younger than age 18. The monthly pension is payable for a maximum of eight orphans.

Other eligible survivors (in the absence of the above): The amount varies according to the degree that the survivor was dependent on the deceased.

Benefit adjustment: Benefits are adjusted periodically according to changes in the cost of living.

Funeral grant: The cost of the burial or an amount prescribed by the Minister of Labor and Social Security.

Administrative Organization

Ministry of Labor and Social Security provides general supervision.

Managed by a board and a commissioner, the Worker's Compensation Fund administers contributions and benefits.