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Zambia's new National Health Insurance Fund now enforced

Zambia's new National Health Insurance Fund now enforced

Businesses in Zambia must take cognisance of the country's new National Health Insurance Fund, effective 1 October 2019, which not only requires employers to register their employees, but also that both employers and employees contribute to the fund.

The fund, applicable via statutory instrument no.63 (following approval of the National Health Insurance Act 2018 in April 2018) affords specific responsibilities to employers and employees.

Specialist provider of human capital management solutions CRS Technologies believes the Zambian labour market has arrived at a critical juncture. General Manager Ian McAlister explains the significance of the development.

"An employer must register an employee with the National Insurance Management Authority as a member. An employee means any person who has entered into or works under a contract of service, whether the contract is expressed or implied, is verbal or in writing, and whether the remuneration is calculated by time or work done or is in cash or kind. Persons employed under a contract of apprenticeship made in accordance with the Apprenticeship Act, or a casual employee cannot be registered as a member."

Given that the economies of Southern African countries remain under pressure – as is the case with most across the continent – cost reduction, capital flow, revenue generation and job creation are all priorities, McAlister continues.

"This is relevant because the fund requires that employers pay a contribution to the scheme consisting of both the employer and employee's contribution."

Both employers and employees must pay 1% of their basic salaries, and the employer must pay the contributions deducted in a month on or before the 10th of the following month.

McAlister advises companies to be aware of the type of information that needs to be reported. "This is because specifications regarding the reporting are not set out in the statutory instrument."

Full details, including name, business references, NRC or passport numbers, employment number, marital status, number of employees and contact details must be supplied.

As always, CRS Technologies is available to assist clients. For more information and advice, contact

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