The Government of Rwanda is to establish a comprehensive long-term savings scheme for all categories of workers regardless kind of employment aims at helping all categories of citizens to access on saving profit for their post working period.
The cabinet decisions on 13th September 2016 special meeting held at Urugwiro came up with improved saving scheme decision and post cabinet decisions press conference yesterday revealed more about it.
Minister of Finance and Economic Planning Claver Gatete said a draft law approved by Cabinet on Tuesday to the effect will be presented to parliament for further scrutiny and it is voluntary and flexible.
“This law comes to put the system in place to generate savings that can be used partly as pension, its voluntary and flexible and there is no fixed amount of contribution”.
Unlike the usual saving scheme mainly for public servants who contribute monthly, should the draft law be adopted by lawmakers, the proposed scheme will cater for everybody, including low-income earners being able to deposit money through the savings scheme, which they can reclaim later with benefits.
“You can save your money in one month, you can save it in a quarter, depending on where you are getting income and also any amount, meaning that it has to work for everyone, but it is not compulsory that you must be part of this.”
Once the legal framework is in place, the Government will create an independent institution that will be able to use the deposited money in lucrative investments to generate more revenues for the saving members.
The scheme will be collecting voluntary contributions from members of the public from all sort of service, whether formal or informal in a form of pension savings scheme.
Théogène U @Bwiza.com