Govt tightens manpower levy compliance to fund skills development

Government is tightening compliance with the Manpower Training Levy as it moves to strengthen funding for skills development, industrial training and modernisation programmes across the country.

In a statement, the Zimbabwe Manpower Development Fund (ZIMDEF), warned employers against defaulting on the statutory levy, emphasizing on its relevance to the enhancement of skills development.

“The levy provides resources for developing the skilled workforce needed to support Zimbabwe’s economic transformation.

“Stronger compliance will ensure that resources are consistently available to support national skills development initiatives,” it said.

ZIMDEF reminded employers that the levy is calculated at 1 percent of the wage bill and that it must be remitted by the 15th of every month in terms of the Manpower Planning and Development Act [Chapter 28:02].

“The Manpower Training Levy is a direct cost to the company,” ZIMDEF said, warning employers against passing the statutory obligation on to workers.

Section 54(2) of the Act prohibits employers from deducting the levy from employees’ salaries, with such conduct constituting a criminal offence under Section 54(5)(b).

ZIMDEF also warned that employers who fail to remit the levy without reasonable or just cause risk criminal prosecution.

Under Section 54(4), the fund is empowered to recover unpaid levies, surcharges and interest through a court of competent jurisdiction.

The compliance drive is expected to improve levy collections and provide Government with a stronger financial base to support training programmes, skills development and industrial modernisation.

ZIMDEF, which falls under the Ministry of Higher and Tertiary Education, Innovation, Science and Technology Development, channels the levy towards programmes designed to strengthen the country’s human capital and align skills development with national economic priorities.

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