Zambia

Recent significant developments in the taxation of individuals in Zambia are as follows:

• Both employers and employees are required to make contributions to the National Pension Scheme Authority (NAPSA). The contribution rate is 5% of the employee’s total earnings (a total 10% contribution from both the employer and employee), subject to a limit as prescribed by the authority. The maximum contribution limit for 2023 is ZMW 1,342 per employee per month (i.e. a total of ZMW 2,684 from both the employer and employee per month).
• The government commenced the implementation of the National Health Insurance Act of 2018 in October 2019. Under the Act, employers have various obligations, including:

• registering their employees with the scheme within 30 days of commencement of employment, and

• paying an employee’s contribution to the scheme on a monthly basis (the contribution includes both the employer’s and employee’s contributions; the prescribed rate is 1% of the employee’s basic salary, making a total of 2% for both the employer and employee).