Workers’ unions in Rwanda have urged the Rwanda Social Security Board (RSSB) to convene a consultative meeting regarding the decision to increase pension contributions.
The unions seek to ensure workers are thoroughly informed about these reforms and how they will be implemented.
This request was made in a letter addressed to the Director General of RSSB and signed by representatives of key labor organizations, including the Congrès du Travail et de la Fraternité des Travailleurs (COTRAF Rwanda), theRwanda Workers’ Trade Union Confederation (CESTRAR), and the Conseil National des Organisations Syndicales Libres au Rwanda (COSYLI).
A copy of the letter, obtained by ICK News, highlights the unions’ appreciation for the proposed pension adjustments, expressing confidence that they will enhance retirees’ living standards.
However, the unions voiced concerns about the lack of comprehensive communication to workers regarding the implementation of this decision, emphasizing the need for dialogue.
The letter states: “As representatives of diverse categories of workers across Rwanda, and given that employees are the primary beneficiaries of these reforms, we request that you organize a consultative meeting promptly. This would enable us to obtain detailed information on these changes and their implementation process, empowering us to better explain them to the workers we represent.”
The proposed increase in workers’ pension contributions from 6% to 12%, set to commence in January 2025, has sparked widespread debate.
While many acknowledge the potential benefits, critics argue the timing is problematic, given the current economic challenges.
The Rwandan Franc has been losing value, market prices for essential goods are soaring, and wages remain stagnant. Furthermore, the national minimum wage has yet to be established.
During a press conference held on December 2, 2024, RSSB, the Ministry of Finance and Economic Planning, and the Ministry of Public Service and Labour revealed that only 9% of Rwandans are formally employed.
This figure includes individuals whose employers contribute to statutory benefits, including taxes and pension schemes.
Critics fear that increasing contribution rates could drive employers to reduce formal employment, thereby shrinking this already limited percentage.
Dr. Joseph Ryarasa Nkurunziza, Executive Director of Never Again Rwanda, stressed the need to focus on increasing formal employment before doubling statutory pension contributions.
On his X account (formerly Twitter), he wrote: “ As mentioned in the briefing, only 9% of workers are in formal employment. Shouldn’t we first focus on expanding formal sector employment before doubling mandatory contributions?”
Ambassador Christine Nkulikiyinka, the Minister of Public Service and Labour, reassured workers during the press briefing that as Rwanda’s economy grows, wage increments for both public and private sector employees will be aligned with broader labor market reforms.