On December 5, 2024, Prime Minister Dr. Edouard Ngirente shared Rwanda’s ambitious plans for the future, focusing on long-term decisions to improve citizens’ lives. One of the major announcements was the decision to increase pension contributions from 6 percent to 12 percent starting in January 2025.
This change is part of the government’s strategy to ensure a secure future for Rwandans.
At a press conference discussing Rwanda’s economic status and the National Strategy for Transformation (NST2), Dr. Ngirente explained that the government is focused on making transformative decisions for the country.
The Prime Minister highlighted the progress made during the first phase of NST, including infrastructure improvements and better service delivery.
He expressed confidence that the next five years will bring even greater progress as Rwanda works to become an upper-middle-income country by 2035 and a high-income nation by 2050.
A key part of this plan is the pension reform. Dr. Ngirente clarified that the increase in pension contributions was a government decision, not one made by the Rwanda Social Security Board (RSSB).
The government approved the plan to raise contributions, with employees and employers each contributing 6 percent starting in January. This will increase to 20 percent by 2030.
The Prime Minister explained that life expectancy in Rwanda has increased significantly, with the average age now at 69 years. Many people now live decades after retirement, which means they need to save more for their future. “Rwandans deserve to enjoy long, comfortable lives,” he said. “Saving for the future is key.”
Although the new pension contribution might feel burdensome at first, Dr. Ngirente assured Rwandans that it will lead to better pension benefits in the future. He urged people to see it as a necessary sacrifice for long-term security. The government is also working with the private sector to expand participation in the pension scheme, especially for workers in informal sectors.
Currently, only 9 percent of Rwanda’s workforce is enrolled in the pension system. Dr. Ngirente emphasized that the government will support businesses in formalizing and joining the pension scheme. Employers must be transparent about their operations to make this work.
The Prime Minister also discussed other government priorities, such as boosting agricultural productivity, improving trade, and maintaining positive relationships with neighboring countries. He stressed that Rwanda’s security and well-being are always the top priorities.
Dr. Ngirente concluded by urging patience and understanding. “Sacrifices today will lead to a better tomorrow,” he said.
With bold initiatives like these, Rwanda is building a stronger, more secure future for its citizens.
