NAPSA Partial Withdrawal 2026: Who Qualifies for the 20% and How It Works

NAPSA partial withdrawal lets you take 20% of your pension contributions and interest once, before retirement. You qualify if you're below retirement age and have made at least 60 monthly contributions, or have reached age 45. The rule comes from section 21A of the National Pension Scheme Act, added in April 2023. The money you take is deducted from your final retirement benefit, and pension benefits like this are tax-free. A new National Pension Scheme Act, 2026, adds a separate 30% withdrawal just before retirement, but as of October 2026 it hasn't come into force.

NAPSA 20% partial withdrawal: the rules at a glance

Source: National Pension Scheme Act, 1996, as amended to April 2023 (ZambiaLII).

Who qualifies for the NAPSA partial withdrawal?

Under section 21A(1), you can claim the pre-retirement benefit if all of these apply:

1. You give written consent. You apply yourself; nobody can take it out for you.
2. You're below pensionable age. NAPSA's normal retirement age is 60.
3. You meet one of two tests:
   • you've made at least 60 monthly contributions (five years' worth), or
   • you're 45 or older, regardless of how many contributions you've made.

So a 30-year-old with six years of contributions qualifies, and so does a 46-year-old who has only contributed for two years. A 35-year-old with three years of contributions doesn't qualify yet.

The months count from your NAPSA contribution record, not your time at your current employer. Contributions from previous jobs count, as long as they were paid to NAPSA under your Social Security Number.

How much will I get?

Section 21A(2) sets the benefit at 20% of your indexed monthly contributions and the accrued interest. That's based on the total recorded in your NAPSA account, which includes both your 5% and your employer's 5%.

A rough illustration: say you've earned K8,000 a month for eight years. Each month, K400 (you) + K400 (employer) = K800 went to NAPSA. Over 96 months that's K76,800 in contributions. Twenty percent of that is K15,360, and the real figure will be higher because NAPSA adds indexation and interest. Your NAPSA statement shows the actual balance.

For scale: by April 2025, NAPSA had paid K10.1 billion in partial withdrawals to 487,389 members, about K20,700 each on average, News Diggers reported.

Is the NAPSA 20% taxed?

No. ZRA's 2026 PAYE guide lists pension benefits as exempt from tax, including refunds of employee pension contributions and withdrawals of employer pension contributions. You receive the full 20%.

What does the 20% cost you later?

Section 21A(4) says a member who takes the benefit consents to a reduction in their retirement or other final benefit. In plain terms, the money comes out of your future pension.

That matters because NAPSA is the only pension many Zambians have. Before you claim, weigh what the money is for:

• Good uses: clearing an expensive loan, finishing a house you'll live in, paying school fees you'd otherwise borrow for, or starting a business with a real plan.
• Poor uses: everyday spending, a phone or car, or lending it to others. Once it's gone, it's gone from your retirement too. If you'd rather keep the money working, see how to buy Zambian treasury bills from K1,000.

If the money is coming into a mobile wallet, cashing it out costs extra; see Airtel Money charges in Zambia for withdrawal fees.

How to apply for NAPSA partial withdrawal

NAPSA handles partial withdrawal claims through its member services. In general you'll need:

• your NRC (National Registration Card),
• your NAPSA Social Security Number,
• your phone number registered with NAPSA, and
• bank or mobile money details for the payment.

NAPSA's systems verify your contribution record before paying. Because claim steps change, check the current process on napsa.co.zm or at a NAPSA office before you start. Don't pay anyone to "process" your claim: applying is free, and agents offering to speed it up for a fee are a common scam.

What is the new 30% NAPSA withdrawal in the 2026 Act?

Zambia passed a new National Pension Scheme Act, 2026 (Act No. 72 of 2026). It was assented to on 4 June 2026 and published in the Government Gazette on 12 June 2026. It adds a separate benefit: access to 30% of your indexed contributions and interest within the three months before you retire.

But the Act only takes effect on a date the Minister appoints by statutory instrument, and as of October 2026, ZambiaLII still lists it as not commenced. Some news reports in June 2026 described the 30% as already available. It isn't yet: until a commencement order is published, the rules above under the 1996 Act still apply.

What we know about how the two benefits fit together:

When the 2026 Act commences, check NAPSA's guidance on whether taking the 20% earlier affects the 30%.

Common mistakes and scams

• Paying an "agent". NAPSA doesn't charge to process a partial withdrawal. Anyone asking for a fee is not acting for NAPSA.
• Believing the 30% is open. It won't be until the 2026 Act commences.
• Not checking your record first. If an employer deducted NAPSA from your pay but didn't pay it over, those months won't count. Check your statement and raise gaps with NAPSA.
• Treating it as free money. It's your own retirement savings, taken early.

Your monthly NAPSA deduction appears on your payslip alongside PAYE and NHIMA; our guide to PAYE in Zambia shows how all three are worked out, including the 2026 NAPSA ceiling of K37,236. In East Africa, the equivalent funds work differently: compare NSSF Uganda's contributions and Smartlife Flexi savings and NSSF Tanzania's benefits. More guides for Zambia are on our Zambia page.

Frequently asked questions

Who qualifies for the NAPSA 20% withdrawal?

Members below retirement age (60) who give written consent and have either made at least 60 monthly contributions or reached age 45, under section 21A of the National Pension Scheme Act.

Can I withdraw my NAPSA 20% more than once?

No. The pre-retirement benefit is a one-off. Once you've taken it, you can't claim it again.

Is the NAPSA partial withdrawal taxed?

No. ZRA treats pension benefits, including refunds and withdrawals of pension contributions, as exempt from tax.

Can I withdraw 30% from NAPSA in 2026?

Not yet. The 30% near-retirement benefit is in the National Pension Scheme Act, 2026, which hasn't come into force. It will apply only within the three months before retirement, once the Minister issues a commencement order.

Does the 20% withdrawal reduce my pension?

Yes. Section 21A says the member consents to a reduction in their retirement or other final benefit, because the money comes out of the same savings.

How much have members received from NAPSA partial withdrawals?

By April 2025, NAPSA had paid K10.1 billion to 487,389 members since the benefit started in April 2023.