THE National Social Security Authority (NSSA) has launched a blitz on companies over non-remittance of pensions and other benefits.
In a statement NSSA, said with effect from February 1 to March 31 this year it would be carrying out door-to-door business inspections to verify company compliance in remitting contributions for the year ended December 31 2013.
According to NSSA, this would be done in accordance with the National Pensions and Other Benefits Scheme (SI393/93) and Accident Prevention and Workers’ Compensation Insurance Fund.
“Clients are strongly urged to ensure that their contributions and premiums are up to date,” NSSA said in a statement.
“Failure to pay contributions and premiums by the 10th of each month does not only attract 50% surcharges and penalties, but it may also attract criminal sanctions.”
The social security authority said as per statutory requirement all premiums and contributions are remitted to the authority by the 10th of each and every month.
In the event the that clients are in arrears NSSA said they should contact the authority for payment arrangement by January 31 and if such arrangements are not made within that period no favourable considerations would be made in the application of surcharges and penalties.
Most companies especially in Bulawayo, are in arrears as they are battling to stay afloat and finance their operations largely due to shortage of working capital, antiquated machinery and erratic power supplies, among a plethora of other challenges.
A number of companies had their properties attached in the past years over non-compliance of remitting NSSA contributions.
Close to 100 companies shut down in 2012 and more are expected to close this year as the harsh economic conditions continue to bite.
Capacity utilisation plunged to 39,6% last year as industry continues on the doldrums and the government has so far failed to come up with measures to restore confidence in the economy.
Business lobby groups like the Affirmative Action Group have for years been lobbying NSSA, among other authorities, to provide a moratorium for distressed companies to allow them to recover.