Business

Informal sector most non-compliant to social security

  • BY TONY BARIGYE
  • July 08, 2009

The informal sector has been pointed out as the most defiant towards social security compliance, according to the Social Security Fund of Rwanda (SSFR).

This was revealed by Moses Kazoora, Principal Officer and Customer Relations of the public pension body during a sensitization session of employers from Gasabo district at Hilltop Hotel in Remera.

He disclosed that, “The low rate of social security compliance is because 60 percent of the informal sector doesn’t want to give us their money.”

“It (social security) is a law and right. Some know it and don’t want to comply.”

Benjamin Sebahizi, a Human Resource Manager at the Senate, who attended the session, said the reason for such a huge percentage is because they have to wait for old age to qualify for pension.

“It (SSFR) is still unrecognised. It is because the people see the benefits as long term. There is also a problem of poverty,” he said.

Sebahizi suggested that for easy of compliance, SSFR should make investments that create a close relationship with the populace.

“For compliance, Social Security Fund should work with workers in their everyday life. For example they should prioritize investment in projects that directly help the populace in improvements.”

However, Kazoora said that they are working with responsible parties to increase compliance.

“We are collaborating with Rwanda Revenue Authority (RRA) and private sector and also the Ministry of Finance to increase the compliance in the informal sector,” he said.

The SSFR currently has a coverage of five percent of 300,000 employees and employers in the country.

Ends


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