[Namibia] Payroll deduction system for civil servants will end

In Namibia, the Ministry of Finance is set to discontinue all discretionary payroll deductions for government employees, with the Payroll Deduction Management System (PDMS) scheduled to shut down on 30 November, AllAfrica reports.

A directive issued on 28 August informed employees and financial institutions that the government's contract with Avril Payment Solutions, the operator of the system, will not be renewed.

With immediate effect, no new voluntary payroll deductions may be loaded onto the PDMS.

Existing loans already linked to the system will reportedly continue to be serviced internally by the ministry until they are repaid in full.

However, insurance premiums, union fees and other voluntary deductions must be moved to alternative payment methods, such as bank debit orders, before the closure. Statutory deductions, including PAYE, pension contributions and social security, will be unaffected.

The government has provided a three-month transition period to allow affected parties to secure new collection arrangements. From December, no non-statutory payments will be processed via the government payroll.

The directive reportedly follows a moratorium imposed two years ago by the Ministry of Finance, together with Namfisa and the Bank of Namibia, on the issuance of new payroll deduction codes while reviewing the relevance of the PDMS.

Source: AllAfrica

In Namibia, the Ministry of Finance is set to discontinue all discretionary payroll deductions for government employees, with the Payroll Deduction Management System (PDMS) scheduled to shut down on 30 November, AllAfrica reports.

A directive issued on 28 August informed employees and financial institutions that the government's contract with Avril Payment Solutions, the operator of the system, will not be renewed.

With immediate effect, no new voluntary payroll deductions may be loaded onto the PDMS.

Existing loans already linked to the system will reportedly continue to be serviced internally by the ministry until they are repaid in full.

However, insurance premiums, union fees and other voluntary deductions must be moved to alternative payment methods, such as bank debit orders, before the closure. Statutory deductions, including PAYE, pension contributions and social security, will be unaffected.

The government has provided a three-month transition period to allow affected parties to secure new collection arrangements. From December, no non-statutory payments will be processed via the government payroll.

The directive reportedly follows a moratorium imposed two years ago by the Ministry of Finance, together with Namfisa and the Bank of Namibia, on the issuance of new payroll deduction codes while reviewing the relevance of the PDMS.

Source: AllAfrica