How To Calculate Social Security In Namibia

How To Calculate Social Security In Namibia

What is Social Security?

Social Security provides a foundation of income on which workers can build to plan for their retirement. It also provides valuable social insurance protection to workers who become disabled and to families whose breadwinner dies. It can help support your family when you die and provide monthly benefits when you retire or if you become severely disabled. Your work in Social Security covered employment helps you and your family qualify for those benefits.

How To Calculate Social Security In Namibia

Social security is payable on a 50:50 contributions from employers and employees.

The contributions are calculated at 0.9% of earnings, with a minimum monthly contribution of N$2.70 and a maximum monthly contribution of N$81.00 by each.

Payments must be made within 20 days after the month-end.

Frequently Asked Questions

What is social security in Namibia?

Social Security Commission (, managed by a tripartite board of directors, administers social insurance cash sickness and maternity benefits, and pays benefits through the Maternity, Sickness and Disability Fund.

How is Social Security benefit calculated in Namibia?

Social Security benefits are based on your lifetime earnings. Your actual earnings are adjusted or “indexed” to account for changes in average wages since the year the earnings were received. Then Social Security calculates your average indexed monthly earnings during the 35 years in which you earned the most.

Is Social Security taxable in Namibia?

Social security is payable on a 50:50 contributions from employers and employees. The contributions are calculated at 0.9% of earnings, with a minimum monthly contribution of N$2.70 and a maximum monthly contribution of N$81.00 by each. There is no estate duty or donations tax in Namibia.

Do married couples get two Social Security checks in Namibia?

Yes. Each spouse can claim their own retirement benefit based solely on their individual earnings history. You can both collect your full amounts at the same time. However, your spouse’s earnings could affect the overall amount you get from Social Security, if you receive spousal benefits.

Who can benefit from Social Security in Namibia?

You can receive Social Security benefits based on your earnings record if you are age 60 or older, or disabled or blind and have enough work credits. Family members who qualify for benefits on your work record do not need work credits.

How much does an employee pay in Social Security?

Social Security is financed through a dedicated payroll tax. Employers and employees each pay 6.2 percent of wages up to the taxable maximum of $142,800 (in 2021), while the self-employed pay 12.4 percent.

Can a person who has never worked collect social security in Namibia?

The only people who can legally collect benefits without paying into Social Security are family members of workers who have done so. Nonworking spouses, ex-spouses, offspring or parents may be eligible for spousal, survivor or children’s benefits based on the qualifying worker’s earnings record.

Does wife get half of husband’s Social Security in Namibia?

The spousal benefit can be as much as half of the worker’s “primary insurance amount,” depending on the spouse’s age at retirement. If the spouse begins receiving benefits before “normal (or full) retirement age,” the spouse will receive a reduced benefit.

At what age is Social Security no longer taxed in Namibia?

At 65 to 67, depending on the year of your birth, you are at full retirement age and can get full Social Security retirement benefits tax-free. However, if you’re still working, part of your benefits might be subject to taxation.

How does Namibia tax work?

Namibia has a source based system of taxation with the result that Namibian residents are, save for some exceptions, only taxed on their Namibian income while foreign residents are taxed only on the income generated within Namibia.

Does Namibia have capital gains tax?

There is no capital gains tax in Namibia. Namibia also has thin capitalisation rules in terms of which the deduction of interest may be disallowed.

Are monthly pensions taxable in Namibia?

The taxable part of your pension or annuity payments is generally subject to federal income tax withholding. You may be able to choose not to have income tax withheld from your pension or annuity payments (unless they’re eligible rollover distributions) or may want to specify how much tax is withheld.

Do you pay tax on dividends in Namibia?

Dividends. Dividends declared by a Namibian company to a non-resident person will be subject to non-resident shareholders tax (NRST), a WHT. NRST is payable at the standard rate of 10% where a company holds more than 25% shares in the Namibian company. In all other cases, NRST payable is 20%.

Can a divorced woman collect her ex husband’s Social Security in Namibia?

If you are divorced, your ex-spouse can receive benefits based on your record (even if you have remarried) if: Your marriage lasted 10 years or longer. You are entitled to Social Security retirement or disability benefits.

How long do you have to be married to get half of spouse’s retirement?

How long does someone have to be married to collect Social Security spouse benefits? To receive a spouse benefit, you generally must have been married for at least one continuous year to the retired or disabled worker on whose earnings record you are claiming benefits.