The government has approved the recommendation of the Workers Compensation Fund Control Board to increase monthly payments for injured workers from K150 to K400 minimum, per month.
The decision follows professional advice through an actual valuation of the Workers Compensation Fund in accordance with the standard actuarial principles.
This indicates that the Fund has a healthy funding level of 325% percent with the value of assets standing at 2.4 billion Kwacha against liabilities of 743 million Kwacha.
Minister of Labour and Social Security Brenda Tambatamba says adjustment is in line with section 86 of the Workers Compensation Act no. 10 of 2019 of the laws of Zambia which permits the Board to increase amounts payable under the Fund.
Speaking at a media briefing in Lusaka, Ms. Tambatamba noted that this is to compensate the beneficiaries for the increase in the cost of living.
She however bemoaned the previous minimum benefit levels which remained low not meet the expectations of the injured workers in terms of levels of coverage and benefits.
“The social security reforms by government are not only aimed at improving benefits but also expanding the scope and modernizing the occupational injury scheme as well as remove ambiguities,” Ms. Tambatamba indicated.
This is in line with the new dawn government’s transformational agenda of changing the Workers Compensation Fund Control Board into a proactive work injury scheme that responds to the needs of beneficiaries, she said.
The Minister implored the Fund to maintain a steady increase of the benefits to adequate levels by re-modeling the investment strategies.
She said this should be to respond to the contemporary investment environment so as to optimize returns in line with President Hakainde Hichilema’s directive during the 2022 International Labour Day celebrations.
Also present at the media briefing was the Workers Compensation Fund Control Board Chairperson Emmanuel Mbambiko who took note of the Ministers concerns and requests, regarding the transformation of the institution