The impact of HIV/AIDS on social security contributions: The case of Zimbabwe

Henry N. Chikova and Camillo F. Chinamasa

International Social Security Review, 2007, vol. 60, issue 4, 23-46

Abstract: Significant early retirement from work due to HIV/AIDS‐related illness is reducing the gainfully employed population and threatening the viability of the statutory social security schemes run by the National Social Security Authority in Zimbabwe. The economy has been in recession for a decade, with high inflation and significant job losses also impacting negatively on contributions to the National Pension and Other Benefits Scheme (NPOBS), and government imposes ceilings on insurable earnings from which contributions are drawn. There are currently no consistent strategies to mitigate attritional effects of these factors on the social security schemes. The aim of this study was to prospectively project the potential impact of HIV/AIDS and imposed ceilings on NPOBS revenue in the presence of high inflation. It was found that HIV/AIDS will reduce projected contributions to the scheme by more than 30 per cent by 2030. Policy strategies to adjust and frequently review levels of growth of imposed ceilings on insurable earnings in line with inflation growth and to invest in HIV/AIDS prevention could be adopted to ameliorate the negative impact of HIV/AIDS and/or ceiling caps on social security contributions in Zimbabwe.

Date: 2007
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https://doi.org/10.1111/j.1468-246X.2007.00279.x

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Persistent link: https://EconPapers.repec.org/RePEc:wly:intssr:v:60:y:2007:i:4:p:23-46

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