All employees will have a portion of their salary deducted in a bid to raise funding for the community-based health insurance scheme commonly known as mutuelles de santé.
According to a statement from the Ministry of Public Service and Labour, 0.5 percent of the net salary will be deducted by the employer every month.
The directive affects both public and private workers.
The move is in line with the Government's decision to implement more subsidies for this scheme which has been grappling with a shortage of sufficient funding.
With annual contributions of Rwf32.8 billion, including Government subsidies, and a total spend of Rwf47.4 billion, mutuelles de santé has been facing a funding deficit of Rwf14.6 billion every year, according to data from the Rwanda Social Security Board (RSSB).
“The Ministry of Public Service and Labour would like to inform all employers and Workers in the Public and Private Sectors, that 0.5% is deducted by an employer from the net of the employee as provided in article 2, paragraph 10 of Prime Minister's Order mentioned above," reads part of the statement.
It adds that; "the declaration of this contribution to RSSB should be done not later than the 15th of the month following the month of payment."
According to RSSB, the extra funding from all subsidies stipulated by the Order total to Rwf10 billion.
Richard Tusabe, former Director-General of RSSB recently told the media that the extra funding will help realise the country’s prospects of universal health insurance coverage
So far, the Community Based Health Insurance scheme is the country’s largest insurance scheme, where it caters for 88 per cent of Rwanda’s 12 million people for their healthcare service needs.
Under the new law, the government will, every year, spend addition Rwf6 billion on mutuelle de santé through direct budget financing.
This is in addition to 100 per cent of the amount collected as penalties for the trade of substandard products paid by the public institution in charge of standards as well as 10 per cent of all fees charged on services offered by gaming companies.
Other revenue streams include 10 per cent of fees collected from road traffic fines and between 2.5 per cent and 3 per cent of the telecommunication sector’s annual turnover.
There will also be 50 per cent of registration fees for pharmaceutical products and medical devices, as well as 100 per cent of the amount collected as medical research fees paid by the ministry in charge of health.
In addition, the initiative will get 50 per cent of the fees collected for motor vehicle mechanical inspection paid by Rwanda National Police.
If following an audit, the subsidies paid are found less than the amount to be paid, the concerned entity pays the unpaid subsidies and an administrative fine equivalent to two hundred percent (200 per cent) of the amount of the unpaid subsidies, the Prime Minister’s order states.Follow lavie250