The Social Security Fund of Rwanda (SSFR) has asked Kicukiro district employers to recognize that workers’ social benefits are rights employees are entitled to. The call was made during last week’s sensitisation workshop at Hilltop hotel. It aimed at educating business owners and employers on the benefits of social security. The workshop, which attracted about 150 business owners, is also part of the pension body’s efforts to increase coverage in the informal sector. “It is therefore important for employers to know the importance and penalties attached once they fail to fulfil their obligations,” Derrick Majyambere Kayombya, the SSFR Officer in charge of Education and Customer Care said. However, though business owners acknowledged the importance of social contributions for workers’ welfare, they said that the benefits directly affect business profitability. “The contribution wouldn’t have been a problem but the five percent contribution from the employers is quit high. It is almost a tax,” said Annet Mutamuliza, Director of King David Academy. The social security law states that social benefits must constitute eight percent of the gross salary of the employee. An employer contributes five percent while the employee pays the remaining three percent. Moreover, Actuarial Consulting Group (ACG), a Singaporean firm has recommended that the contribution rates for both employee and employer be increased to five percent. The SSFR says that the informal sector is most uncovered, with coverage estimated at less than seven percent of the total contribution. However, the Kigali City SSFR branches Coordinator, Jean Claude Ndangamira, said that the number of contributors from the informal sector is slowly increasing as sensitisations continue. Ends
