Below is all you need to know about pension schemes in Rwanda
The Pension scheme aims at:
- Helping the worker who becomes old and incapable of working for a salary or becomes invalid and incapable of living by working;
- Helping the survivors of the deceased worker
The Social Security benefits offered by the branch of pensions are therefore divided into two categories:
- Those given to the insured person himself when old or invalid
- Those given to his eligible survivors.
Enrolling for pension benefits is compulsory for the following individuals:
- All salaried workers (regardless of nationality)
- Active political representatives
The contribution rates are 3% paid by the employer and 3% by the employee.
There is also the option for individuals to enroll as a voluntary member.
Voluntary insurance is when a person who is not subjected to social security by law decides to join the scheme as an individual. This can be achieved by applying to join the scheme and paying the required contribution rate of 6% of the salary that he or she has fixed.
Any person who contributed under mandatory pension scheme and unable to continue meeting those conditions can voluntarily apply to remain a member of the scheme.
The salary used as the basis for calculating the contribution shall not be less than the basic salary and may not exceed one hundred and thirty percent (130%) of the final salary used as the basis for calculating contributions. This salary cannot increase by more than thirty percent (30%) every three (3) years.
The right to apply for voluntary insurance is also accorded to self-employed persons who have never been members of the mandatory pension as long as they are not above 50 years of age.
Types of pension benefits:
- Old age pension
- The anticipated pension
- Invalidity pension
- Old age lump-sum
- The survivors pension
The survivor’s lump sum benefits