National Pension Scheme Authority

Extension of coverage to the informal sector

Implementation year

The National Pension Scheme Authority (NAPSA) was created by an Act of Parliament “The NPS Act” No. 40 of 1996 to provide social security cover to all eligible employees in Zambia in case of retirement, invalidity or death. Since commencement of operations in February 2000, NAPSA has largely focused on the formal sector. However, this sector constitutes only 16 percent (950,000 people) of the total employed population of 5.8 million people (Zambia Labour Force Survey Report, 2014). The remaining 84 percent is made up of employees from the informal sector. 

In line with the Authority's mandate and government's policy on poverty alleviation through social protection, NAPSA is now focusing on extending social security coverage to the uncovered groups in the informal sector. These include; domestic workers, bus and taxi drivers, sawmillers, traders and small-scale farmers.

NAPSA has since established a Project Unit called Extension of Coverage to the Informal Sector to focus on development of strategies and initiatives aimed at extending social security coverage to the informal sector. The Authority has also developed ICT products tailored to the informal sector.

Extension of coverage