The National Social Security Authority (NSSA) said that it has reviewed minimum monthly pension payouts to $3 000 with effect from 1 July 2021.
NSSA deputy director (marketing and communication) Tendai Mutseyekwa said before the latest review, monthly payments were pegged at the equivalent of US$25.
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Mutseyekwa said NSSA plans to increase the funds to the equivalent of US$40 in October and then to US$60 by end of the year. He said
The last review was in April 2021, when we increased the minimum payout from the equivalent of US$12 to US$25.
Our target was to increase to the equivalent of US$30 in July but the $3 000 amounts to about US$35, which is US$5 above our target.
The December target of US$60 was informed by ILO recommendations of a minimum daily income of US$2 for someone to survive in the Southern African region.
We have a clear roadmap on pension increases, but we are not stopping there as we have come up with measures to augment the incomes of our beneficiaries.
Mutseyekwa added that NSSA will soon be launching a revolving fund to assist pensioners and beneficiaries to start income-generating projects. He said:
Next week (this week) we shall be launching a revolving fund to assist pensioners and beneficiaries who are interested in embarking on income-generating projects.
This is a microfinance facility that will have a tenure of 18 months with a token interest rate.
The loans will initially be disbursed through NBS and POSB, with other banks to follow.
NBS and POSB account for just over 70 per cent of our beneficiaries, so it made sense to start with them.