How NSSA Contributions Are Now Calculated

NSSA contributions are based on 9% of an employee’s insurable earnings, with 4.5% paid by the employer and 4.5% by the employee. However, there’s a ceiling—contributions are calculated only up to a maximum insurable earnings limit, which is currently set at USD 700 or its equivalent in ZWG.

Determining What Counts as Insurable Earnings

NSSA calculates contributions starting with the basic salary. However, if the combined total of regular allowances and regular benefits is equal to or more than the basic salary, NSSA includes those amounts in the calculation up to the maximum insurable earnings limit.

For example, if an employee earns a Basic Salary of USD 200, Regular Allowance of USD 150 and a Regular Benefit of USD 100, then:

• Total Allowance + Benefit = USD 250, which exceeds the basic salary of USD 200
• Therefore, NSSA is calculated on USD 200 + 150 + 100 = USD 450
• NSSA contribution becomes 4.5% of USD 450 = USD 20.25 (for employer) and USD 20.25 (for employee).

Handling Multi-Currency Payrolls

In multi-currency payrolls, earnings may be paid in both USD and ZWG. Since the NSSA insurable earnings limit is pegged in USD, ZWG amounts must be converted to USD using the interbank rate applicable on the day of processing. This allows for accurate assessment of whether the combined earnings fall below or exceed the USD 700 limit.

For example, if an employee receives a USD Basic Salary of USD 200, a ZWG Basic Salary of ZWG 4,285.808 and the Interbank Rate of the day is 26.7863, then:

1. Convert ZWG to USD. Divide ZWG 4,285.808 by the rate of 26.7863 to get USD 160.
2. The total combined Basic in USD becomes USD 200 (USD portion) + USD 160 (converted ZWG) = USD 360
3. NSSA Contribution becomes 4.5% of USD 360 = USD 16.20 (employee) and USD 16.20 (employer)

Splitting the Contribution by Currency Proportion

Once the total NSSA contribution is calculated, it needs to be split between USD and ZWG based on the proportion of earnings in each currency (Calculated below).

Using the above example, the USD Portion of Basic is USD 200, the ZWG Portion (converted to USD) is USD 160, hence the Total Basic is USD 360.

Calculate the currency proportion:

• To get the USD Proportion divide 200 by 360 and multiply that by 100 to get 55.56%
• Similarly, calculate the ZWG Proportion by dividing 160 by 360 and multiplying that by 100 to get 44.44%.

Apply the split to the NSSA Contribution:

• The USD Contribution becomes 55.56% of USD 16.20 = USD 9.00
• The ZWG Contribution (in USD) becomes 44.44% of USD 16.20 = USD 7.20. Convert ZWG contribution back to ZWG by multiplying USD 7.20 by 26.7863 to get ZWG 192.84.

What You Will See on the NSSA P4 Reports

After calculating and splitting contributions the USD NSSA P4 Report will show the USD earnings and the USD contributions (e.g., USD Basic Salary of USD 200 and Contribution of USD 9.00 from the above example). The ZWG NSSA P4 Report will show the ZWG earnings and the ZWG contributions (e.g., ZWG Basic Salary of ZWG 4,285.808 and contribution of ZWG 192.84).

This split ensures compliance with NSSA’s updated portal requirements and provides transparency in how multi-currency earnings are reported and remitted.

Conclusion

Understanding NSSA’s contribution rules is key to remaining compliant—especially with multi-currency payrolls. By correctly identifying insurable earnings, applying the USD contribution ceiling, and splitting contributions based on currency proportions, you can confidently generate NSSA P4 reports that meet current standards. Belina Payroll simplifies this process by automatically handling the conversions, limits, and splits—so you can focus on accuracy, not arithmetic. By Ashlene Moyo