Private sector urged to pay for employees’ social security

Some of representatives from private companies who turned up for the training. Courtesy..

By

Glory Iribagiza

Innocent Nyirishema, in charge of corporate services in the Rwanda Social Security Board (RSSB) has urged employers operating in the private sector to pay for

their employee’s social security.

He made the call during a meeting that brought together officials at the pension body and representatives from different private companies in Kigali, which aimed at sensitizing them on the importance of paying pension premiums for their employees.

Nyirishema said: “We should understand that this is our responsibility. Not only thinking about it as employers, but as Rwandans who know that no one should be left behind.”

He gave an example of how some employers use dubious means to default on their obligations, like hotel owners who may choose to pay pension contributions for three employees, and claim the rest of the employees like waiters and cleaners, are casual workers.

Javan Nkundabakura, the Chief Labour Inspector in the Ministry of Public Service and Labour (MIFOTRA) took the trainees through the new Labour Law, and explained their some of their key responsibilities and rights.

One of the key responsibilities talked about is availing social security services to employees, both in the formal and informal sector.

“The law stipulates that every employee should start working when they have their retirement saving scheme already.”

Ejo heza

The employers were also informed more about the informal sector savings scheme, Ejo Heza.

In 2018, Rwanda Social Security Board (RSSB) introduced a new long term voluntary savings scheme known as Ejo Heza, which caters for both people who get their income through salaries, and those who earn money in other ways, not through salaries necessarily.

This was because only 8 per cent of 5.4 million active Rwandans in the working age bracket had access to long-term saving through pension schemes.

The remaining 92 percent, mainly motorcycle taxi operators, drivers, masons, farmers and people involved in handcrafts, were excluded from pension schemes.

“The vision of the country is that every Rwandan who is able to work today, and earn something, will have support that compensates the wage, in the time he/she won’t be able to work”, Nyirishema said.

After one year of Ejo Heza’s implementation, over 200,000 people are saving, and they have already secured over a billion francs.

The trainings on social security were rolled out in Kigali, but will be extended to different sides of the country in the coming days.