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 voluntary members by applying to join the scheme and paying the required contribution rate of 6% of the salary. Voluntary members must be less than 45 years of age 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.
Members automatically include all civil servants, pensioners who previously contributed towards medical care and private institutions who have been accepted.
How much does the insurance cost?
The contributions paid to RSSB represents 15% of employee’s basic salary. It is paid by both the employer and the employee at the rate of 7.5% each.
RSSB also covers the medical insurance for pensioners with 7.5% contribution deducted from their monthly pension.
The employer is responsible for deducting, declaring and paying their employee’s contribution to RSSB. The contribution is deducted on a monthly basis and paid not later than the 10th day of the following month.
What is covered?
RSSB covers 85% of the bill for medical treatment and prescribed drugs. Patients themselves cover the remaining 15% of the cost.
RSSB covers the following medical care provision:
• Medical consultations
• Drugs, including chemotherapy
• Surgical interventions
• Dental care including prosthesis
• Medical imaging, including CT Scan & MRI
• Laboratory tests
• Eye treatment including provision of; lenses and frames
• Lower / upper limb prosthesis & Orthesis
• Full Medical check-up
The full medical checking is provided under conditions (35 years for women and 40 years for men). RSSB covers all medical acts and procedures, all laboratory and imaging investigations provided in Rwanda
Please note that medical care is refundable by RSSB provided that the health facility has signed an agreement with RSSB. The Ministry of Health in collaboration with RSSB has agreed which medical procedures and drugs are to be refunded.
How can private institutions join?
The process for private institutions joining the Medical Benefit Branch involves the following:
1. A letter addressed to the Director General applying for registration;
2. An official document showing the employees’ salary structure for three consecutive months,
(Gross and basic salary) fringe benefits and other charges deducted from one’s salary as
Provided for by the law, such as professional taxes and RSSB contributions;
1. Tax declaration( PAYE ) from RRA;
2. Formats filled; for each employee who requests medical insurance; signed by employee and by employer with legally recognized dependents’ photos and certificates.
3. Certificate of registration in RSSB pension scheme and each employee’s registration number
4. Clearance Certificate from RSSB
5. Trading License for Trading Companies;
6. Certificate of registration obtained:
a. From RDB for domestic company registration;
b. From MINALOC for the case of NGO’s;
c. From Rwanda Cooperative Agency (RCA) for the case of cooperatives;
d. From RBC and accreditation from MOH for medical services;
e. License from BNR for microfinance activities, saving and credit cooperative operating in Rwanda;
f. Agreement to open primary & secondary schools from MINEDUC;
g. License certificate from Media High Council (MHC) for radios and others media activities;
h. Registration certificate from Directorate General of Immigration and Emigration for International Nongovernmental Organizations.
7. Legal entity for Associations/Cooperation or temporally certificate from RGB (Rwanda Governance Board) allow to provisionally operate in Rwanda while a Non-governmental Organization processing the application for legal personality;
8. Number of dependants : spouse and children who are legally recognized;
9. To have at least seven employees by institution;
- Any institution or company wishing to adhere to RSSB medical insurance is required to take membership for all its employees;
- Where both spouses belong to those employees who are insured by RSSB Medical insurance, each one pays his/her own contribution;
- Based on the notification letter granting the application for registration, the employer is required to declare medical contributions not later than the end of the following month;
- Any contribution paid by employer before his/her application has been approved will not be refunded;
- Once this information has been received, it will be reviewed and once accepted, notification will be given