2025 NAPSA Adjustment: A Blow to the Ordinary Zambian
The recent 2025 NAPSA adjustment, raising the maximum monthly deductible contribution to ZMW1,708.20, has been celebrated as a step toward greater retirement security. However, for the average Zambian worker, this policy feels more like a financial burden than a benefit. Behind the polished rhetoric lies a harsh reality: this move disproportionately disadvantages ordinary citizens while further straining an already fragile economic ecosystem.
For the typical Zambian earning close to the National Average Earnings (NAE) of ZMW8,541.00, the increase translates to a significant deduction from their paycheck. While the government touts this as “more savings,” it’s hard to ignore the immediate consequence—less money for daily survival. With inflation driving up the cost of essentials such as food, transport, and housing, most workers cannot afford to have more of their income locked into a system that offers no immediate relief. This adjustment robs ordinary citizens of their financial flexibility, leaving them scrambling to make ends meet.
Moreover, the promise of long-term retirement benefits feels hollow to many. The trust in NAPSA is low, with frequent complaints about delayed payouts and insufficient benefits. For the ordinary Zambian, sacrificing a larger portion of their earnings today feels like throwing money into a black hole, with no guarantee of reaping the promised rewards in retirement. It’s a gamble many can’t afford to take, especially in a country where financial literacy and trust in public institutions remain challenges.
The impact on families is even more pronounced. For households relying on dual incomes to sustain basic needs, the increased NAPSA contributions from both spouses further shrink disposable income. Parents may be forced to cut back on school fees, healthcare, or even food budgets to accommodate these deductions. This policy doesn’t just hurt individuals—it undermines the welfare of entire families, perpetuating cycles of poverty and financial insecurity.
For workers in the informal sector, who already lack access to NAPSA, this adjustment widens the gap between them and their formally employed counterparts. It creates a perception that formal sector workers are being unfairly taxed to compensate for systemic inefficiencies. This further alienates a large portion of the population and deepens economic inequality, leaving ordinary Zambians questioning who this policy truly serves.
From a macroeconomic perspective, the timing of this adjustment couldn’t be worse. Businesses, especially SMEs, are grappling with post-pandemic recovery, and now face increased payroll costs. These costs inevitably trickle down to workers, either through job cuts, stagnant wages, or reduced benefits. For an ordinary Zambian, this means fewer opportunities for employment and growth, coupled with higher job insecurity.
The policy’s lack of transparency further aggravates the situation. Ordinary Zambians have no clear understanding of how their contributions are managed or invested. Without accountability, it feels like a coercive system where the government takes more without giving back in meaningful ways. For workers who are already burdened with taxes and other deductions, this is an unwelcome additional strain.
Ultimately, the 2025 NAPSA adjustment is a stark reminder of how disconnected policymakers can be from the realities of ordinary citizens. It imposes a one-size-fits-all solution in a country where economic disparities are vast, leaving the average worker to bear the brunt of poorly conceived policies. Rather than empowering Zambians, this adjustment strips them of agency, leaving them with less money, less trust, and fewer opportunities to improve their lives. It’s a harsh blow to those who can least afford it.
KUMWESU JAN 2, 2024