The Pension scheme aims at:
1. Helping the worker who becomes old and incapable of working for a salary or becomes invalid and incapable of living by working;
2. Helping the survivors of the deceased worker
The Social Security benefits offered by the branch of pensions are therefore divided into two categories:
1. Those given to the insured person himself when old or invalid
2. Those given to his eligible survivors.
Enrolling for pension benefits is compulsory for the following individuals:
1. All salaried workers (regardless of nationality)
2. 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. This can be achieved by applying to join the scheme and paying the required contribution rate of 6% of salary. Voluntary members must be less than 45 years of age in order to be accepted. Once you have been in mandatory insurance, you are only eligible to apply for voluntary insurance within the first 12 months of the date on which your mandatory insurance ended.
The salary declared under voluntary insurance must be at least the minimum monthly salary, subject to a ceiling of 104,000 RWF.
Types of pension benefits
1. Old Age pension (Retirement)
2. The anticipated pension (Early Retirement)
3. Invalidity pension
4. Old age lump-sum
5. The survivors pension
6. The survivor’s Lump Sum benefits
Declaration dates (for Pension and Occupational Hazard Branches)
Declaration (returns filing) is done using RRA online portal known as E-tax system and after declaration submission payment is done at any commercial bank or online.
Declaration and remittance of contribution to mandatory scheme are made on monthly basis; not later than the 15th day of the month following the month to which the contributions relate.
What happens on late payment of contributions?
Sanctions are applied to employers in respect of Pension and Occupational Hazard benefits for late payment of contributions:
Surcharge for late payment - all late payments after the deadline are charged 1.5% per month for the delay of the list of declared personnel and 1.5% for the delayed payment to the bank.
Forced payment of contribution - the employer who fails to remit the contributions on time is subjected to the procedure of forced recovery in conformity with the law.
Penal Sanctions - these can be expected in case of absence or faulty registration; failure to declare employees’ salaries; failure to pay contributions in the given time; failure to respect rules and regulations governing declaration of work-related accidents and diseases; false or inexact declarations.
In extreme cases, Medical Benefits may not be paid if contributions have not been paid. In these instances, the Director General will review the individual case.