Namibia’s Social Security Commission will progressively increase the Maternity Leave, Sick Leave and Death Benefit Fund contribution ceiling from NAD 11,000 to NAD 12,500 from 1 September 2026, with further increases scheduled annually through 2029, raising the maximum monthly contribution for both employees and employers.
The Social Security Commission (SSC) of Namibia released a public notice on 7 August 2026 that outlines a progressive plan to increase the contribution ceiling for the Maternity Leave, Sick Leave, and Death Benefit Fund (MSD).
While the contribution ceiling increase was originally scheduled to take effect on 1 March 2026, its implementation was deferred to 1 September 2026. This delay was due to a postponement in publishing the required amendments in the Government Gazette.
The key amendments are:
The four-year progressive implementation schedule (2026–2029)
- Phase 1 (Financial Year 2025/2026): Effective 1 September 2026, the maximum basic salary ceiling will reach NAD 12,500 per month. The maximum monthly contribution at 0.9% will be NAD 112.50 for both employee and employer, an increase from the previous NAD 99 cap.
- Phase 2 (Financial Year 2026/2027): Starting 1 March 2027, the ceiling rises to NAD 14,000 per month, with maximum monthly contributions of NAD 126 each for employee and employer.
- Phase 3 (Financial Year 2027/2028): From 1 March 2028, the ceiling increases to NAD 15,000 per month, with maximum monthly contributions of NAD 135 each.
- Phase 4 (Financial Year 2028/2029): Effective 1 March 2029, the ceiling reaches NAD 16,000 per month, with maximum monthly contributions of NAD 144 each.
Monthly impact breakdown by salary bracket (September 2026)
The MSD contribution rate is split equally, with the employee paying 0.9% and the employer matching with 0.9%. Starting 1 September 2026, the monthly contributions are structured as follows:
- Basic salary of NAD 500 per month: No changes apply. Both employee and employer continue contributing NAD 4.50 per month.
- Basic salary between NAD 501 and NAD 12,499 per month: Contributions are calculated at 0.9% of the basic salary. A salary of NAD 10,000, for example, results in NAD 90 contributed by each party.
- Basic salary of NAD 12,500 or more per month: Contributions are capped at NAD 112.50 per employee and employer, up from the previous maximum of NAD 99. This represents an increase of NAD 13.50 per party.
While the notice is highly detailed regarding the contribution structure, it does not outline the historical contribution ceilings before NAD 11,000, nor does it detail the specific benefit payout amounts or maximum durations for maternity, sick, or death claims.
