Rwanda: 40% of NGOs Don’t Pay Social Security for Staff
New data from an Rwanda Governance Board (RGB) study has revealed that more than 40 percent of local non-governmental organizations (NGOs) don’t contribute to social security and insurance coverage for their staff.
Furthermore, the recruitment practices of many NGOs do not adhere to relevant procedures, posing a risk to the well-being of employees during their retirement.
The findings of the local NGO Monitoring 2022-2023 report were presented during an engagement meeting between RGB and national NGOs in Kigali on Tuesday, June 27. There are approximately 2,000 national NGOs, according to RGB data. However, the assessment specifically examined 63 local NGOs during the 2022-2023 fiscal year.
RGB CEO Usta Kaitesi said that additional NGOs will undergo assessment in the upcoming fiscal year.
The assessment encompassed various indicators, including governance and compliance with laws, transparency and accountability, implementation of the organization’s core mandate, finance and human resource management, and partnership with stakeholders. Notably, the indicators related to finance and human resource management exhibited the poorest performance.
Within the finance category, only 41.2 percent of the total NGOs possessed a financial procedures manual, while 47.1 percent conducted financial and asset audits.
Regarding human resource (HR) management, the assessment revealed that only 41.2 percent of NGOs had an HR procedure manual, and a mere 29.4 percent followed staff recruitment procedures.
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Furthermore, the assessment uncovered that 52.9 percent of the NGOs employed permanent staff, with only 58.8 percent providing social security and insurance coverage for their employees.
In response to these concerning findings, RGB CEO Usta Kaitesi stressed the importance of assessing NGOs based on their compliance with legal obligations and rules. She highlighted that these evaluations serve to identify problems and prompt corrective measures. Kaitesi added, “As an organization, you are under obligation to abide by the rule of law, while also respecting the rights of the employees and beneficiaries.”
Emmanuel Nzeyimana, Deputy Spokesperson of Rwanda Civil Society Platform, emphasized the need to address the identified issues to enhance NGO performance and staff welfare. He called for improvements in human resources and financial capacity, advocating for adherence to legally acceptable recruitment procedures and personnel management.
Nzeyimana further stated that non-payment of social security and insurance contributions for staff members is a critical issue that should be resolved through compliance measures enforced by entities such as the Rwanda Social Security Board (RSSB) and the Rwanda Revenue Authority (RRA).
Highlighting the impact on workers’ rights, Nzeyimana emphasized, “As an employee, I should be benefiting from remittances from my employer. If an employer fails to fulfill these obligations, it becomes an issue for my pension, leaving me vulnerable during retirement.”
Additionally, the assessment revealed that 94.1 percent of surveyed NGOs demonstrated transparency and accountability by implementing activities in the best interests of the beneficiaries.
