The Zimbabwe Congress of Trade Unions (ZCTU) has criticised the government for failing to implement policies that promote workers’ rights saying this is causing a surge in pension defaults by employers.
Pension contribution arrears stood at about ZW$5.3 billion as of March 31, 2022.
The Insurance and Pensions Commission (IPEC) Wednesday published a list of the Top 50 pension contribution defaulters.
National Railways of Zimbabwe (NRZ), Harare City Council and Zimbabwe Electricity and Transmission Distribution Company (ZETDC) made it into the top three defaulting companies.
The insurance regulator noted with concern, the continued failure by some sponsoring employers to remit pension contributions to their respective pension funds, to the detriment of pension scheme members, who end up receiving reduced or no benefits, when they become due. Said IPEC in a statement:
Employers that deduct pension contributions, are required, in terms of section 2(a) of Statutory Instrument 61 of 2014, to pay contributions into the pension fund within fourteen (14) days from the end of the calendar month to which they refer.
IPEC has been receiving complaints from pension scheme members who have received reduced or no benefits owing to failure by their sponsoring employers to remit pension contributions after deducting the same.
Speaking exclusively to NewZimbabwe.com, ZCTU acting secretary-general, Runesu Dzimiri, accused the government of not taking workers’ issues seriously, saying such conduct has left companies at comfort as they know that they will not be rebuked.
The ZCTU leader said numerous reports are being received daily from workers who fail to receive their pensions because of non-remittance.
Dzimiri questioned why top-performing companies like OK Zimbabwe were reluctant to remit dues.