Government introduces new method for calculating monthly earnings in worker compensation scheme

TAKUDZWA HILLARY CHIWANZA 

HARARE – The Zimbabwean government has unveiled a new method for calculating the monthly earnings of workers under the National Social Security Authority's (NSSA) Accident Prevention and Worker Compensation Scheme. This scheme provides financial relief to employees and their families in the event of a work-related accident or death.

Salaries and allowances will be used to determine the rate of monthly earnings in Zimbabwe's Accident Prevention and Worker Compensation Scheme

The new calculation method, introduced through Statutory Instrument 22 of 2024, repeals the provisions of Section 41 (1) of the National Social Security Authority (Accident Prevention and Workers’ Compensation Scheme) Notice, 1990. 

It now bases the computation of a worker's monthly earnings on their basic salary and allowances.

The amendment states, "Where allowances and other benefits exceed the basic salary, the allowances and other benefits shall be grossed up and deemed to be the salary for the purposes of calculating the premium.

"Where allowances and other benefits do not exceed the basic salary, the basic salary shall be used as the earnings for the purposes of calculating the premium."

Previously, Section 41 (1) did not base the calculation of earnings and monthly earnings on basic salary and allowances. 

Instead, it included the value of any food and quarters provided by the employer, any overtime payments or other special remuneration of a constant character or for work habitually performed, and any cost of living allowances. 

The new amendment simplifies this by narrowing down the criteria to only allowances and basic salary.

The Accident Prevention and Workers’ Compensation Scheme was established under section 3 of the National Social Security Authority Act [Chapter 17:04].

It provides financial relief to employees and their families in the event of work-related accidents or fatalities. Moreover, the scheme promotes safety and health in workplaces through factory and machinery inspections.

Additionally, the scheme offers rehabilitation services to disabled workers, aiming to reduce their disablement and facilitate their reintegration into the workforce or society. In cases of permanent disability, the scheme provides workers with a pension as compensation.

Notably, the scheme operates on a no-fault basis, meaning that injured employees are entitled to compensation without having to prove employer negligence. 

It offers both short-term and long-term benefits, including periodical payments for loss of earnings, medical aid, lump sums, funeral grants, worker's pensions, widow/widower's pensions, dependant allowances, rehabilitation benefits, and constant attendants.

In addition to providing financial relief, the scheme promotes safety and health at workplaces, encourages the adoption of safety and health legislation through factory and machinery inspection, and provides rehabilitation services to disabled workers.