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SSC launches the employment and salary protection scheme

Namibia Finance minister Ipumbu Shiimi together with the Social Security chief executive Milka Mungunda launched the National Employment and Salary Protection Scheme for Covid-19 on Monday in Windhoek.
Mungunda said before this launch, they considered the following:

  • Assessment of comparative global, regional and local intervention strategies pertaining to social protection interventions.
  • Identification of specific strategies for SSC to contribute to the mitigation of COVID-19 impact on the Namibia economy and specifically workers and employers
  • Identification of the constitutional, legislative and policy rationale for the intervention
  • Assessment of the financial capacity of SSC to undertake any interventions in mitigating the risks and impact of COVID-19 on the Namibian economy;
  • Designing a suitable, affordable and adequate social security COVID-19 stimulus model (short-term and long-term duration)
  • Advice on the operational, IT and administrative platform for the implementation of the social protection stimulus model with efficacy and efficiency.

Details of the National Employment and Salary Protection Scheme
1. The Employer Wage Subsidy Program1 selects hard-hit industries under 3 sectors. This program is designed to save jobs. The program is driven by the following characteristics:
a. Employers of affected industries will receive a subsidy based on their total wage bill, driven by an SSC contribution waiver and a cash injection from the state.
The program will compensate staff relative to the actual wage bill.
b. Includes parties registered with the SSC
c. Prospective beneficiary employers should agree not to retrench staff for April, May and June and should not be allowed to reduce staff salaries by more than 50%
d. Any benefits to be received should be netted against any claims the employer in question may have received from the state or other forms of compensation
(FIDIC or insurance). e. Any amounts of leftover can be used in the Affected Employees program noted
2. The Affected Employees program invites persons to apply for a grant designed to provide compensation for those who have lost income. This program is designed to provide a safety net for those who have been adversely impacted by COVID19. Features include:
a. Applicants should have been registered with the SSC as of 1 February 2020.
b. Applicants should be able to prove loss of income related to COVID192
c. Applicants should earn less than N$50,000 p.a.
d. The benefit will be limited to 50% of monthly salary subject to a minimum of
N$1,000 per month for 3 months (April, May and June).
e. The benefit will be net of other benefits received from the state (e.g. EIG)

Other Modalities
1. How will the registration process work?
 Applicants will apply to the SSC offices and provide information via electronic templates that will be availed on SSC’s website.
2. What are the logistics of payment?
Both Programs can start receiving applications the first week of May
 Payments will depend on the applicants’ ability to provide the required documentation on time. 3. What is the communication plan, how will enquiries be handled?
 Joint announcements (MoF and SSC) by close of business 27 April 2020
 Followed by an awareness-raising campaign which will be driven by the Commission. It was important that we designed a program that included the key elements of both programs envisioned by the key stakeholders (Government of the Republic of Namibia and the SSC. #EagleFM

Wonder Guchu

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