Social Security Contribution Ceiling to Increase from 1 September 2026

The Minister of Justice and Labour Relations has amended the Regulations under the Social Security Act, 1994, increasing the maximum basic salary used to calculate Monthly Social Security (MSD) contributions. The amendments were published in Government Gazette No. 8975 (Government Notice No. 236) on 15 July 2026.

Following publication of the Government Gazette, the Social Security Commission (SSC) issued a circular to employers and payroll practitioners confirming that, due to a delay in the gazetting process, the amendment for the 2025/2026 financial year will be implemented with effect from 1 September 2026, rather than the 1 March 2026 effective date reflected in the Gazette. This means employers should apply the revised contribution ceiling from the September 2026 payroll.

Understanding the Change

Monthly Social Security (MSD) contributions are calculated at 1.8% of an employee's basic salary, with the contribution shared equally between the employer and employee:

• Employer contribution: 0.9%

• Employee contribution: 0.9%

  
  

The contribution is subject to both a minimum and maximum basic salary threshold. The amendment does not change the contribution rate of 1.8%; it only increases the maximum basic salary on which contributions are calculated.

From 1 September 2026, the maximum basic salary will increase from N$11,000 to N$12,500, while the minimum basic salary threshold remains N$500.

Current vs New Contribution Limits

	Up to 31 August 2026	From 1 September 2026
Maximum Basic Salary	N$11,000	N$12,500
Employee Contribution (0.9%)	N$99.00	N$112.50
Employer Contribution (0.9%)	N$99.00	N$112.50
Total Monthly Contribution	N$198.00	N$225.00

How the Calculation Works

The examples below illustrate the practical impact of the revised contribution ceiling.

Employee with a basic salary of N$8,000

As the employee's basic salary falls below both the current and new contribution ceilings, there is no change to the contribution.

	Current	From 1 September 2026
Basic Salary Used	N$8,000	N$8,000
Employee Contribution (0.9%)	N$72.00	N$72.00
Employer Contribution (0.9%)	N$72.00	N$72.00

Employee with a basic salary of N$11,500

Previously, contributions were limited to the maximum basic salary of N$11,000. From 1 September 2026, contributions will be calculated on the employee's actual basic salary because it falls below the new ceiling of N$12,500.

	Current	From 1 September 2026
Basic Salary Used	N$11,000	N$11,500
Employee Contribution	N$99.00	N$103.50
Employer Contribution	N$99.00	N$103.50

Employee with a basic salary of N$15,000

Employees earning above the contribution ceiling remain subject to the maximum contribution.

	Current	From 1 September 2026
Basic Salary Used	N$11,000	N$12,500
Employee Contribution	N$99.00	N$112.50
Employer Contribution	N$99.00	N$112.50

Future Contribution Ceiling Increases

The amendments also provide for further increases to the maximum basic salary used for MSD contribution purposes:

Financial Year	Maximum Basic Salary	Effective Date
2025/2026	N$12,500	1 September 2026*
2026/2027	N$14,000	1 March 2027
2027/2028	N$15,000	1 March 2028
2028/2029	N$16,000	1 March 2029

*The Government Gazette reflects an effective date of 1 March 2026. However, the Social Security Commission has confirmed that implementation of this increase will commence on 1 September 2026 due to the delayed gazetting process.

What This Means for Employers

Employers should ensure that their payroll systems are updated before processing the September 2026 payroll to apply the revised contribution ceiling.

Clients making use of CRVW Payroll Outsourcing Services do not need to take any action. Our payroll team will implement the necessary changes as part of our routine payroll updates to ensure continued compliance with the amended regulations.