Long Term Saving Scheme (EJOHEZA) was established by the Government of Rwanda through the Ministry of Finance under the Law No 29/2017 of 29th June 2017. It is a defined contribution scheme, established on voluntary basis by opening a savings account with a scheme administrator, the Rwanda Social Security Board (RSSB), and covers both salaried and unsalaried people. These include: (1) self-employed individuals working in the informal sector who wish to save for the long-term (2) a salaried employed person regardless of their status as a member of any other social security scheme, who wants to save for the long term, (3) a member, who is no longer active, of a social security scheme to which he/she was affiliated but who receives benefits under the laws regulating that scheme, and who transfers them to a long-term savings account (4) a child below the age of sixteen (16) years benefiting from a long-term saving account opened by his/her parent or guardian and (5) any other person not included in the categories listed above.
- The culture of saving among the citizen/residents in Rwanda.
- Universal access to pension and social security inclusion.
- Financial inclusion.
- Economic growth, poverty alleviation to attain higher standards of living
Any Rwandan citizen with a national ID issued by NIDA and any foreigner residing in Rwanda has the right to voluntarily open an Ejo Heza account. Members of the RSSB Pension Scheme or other voluntary schemes can also voluntarily open an Ejo Heza account to save additionally for their old age.
Your EjoHeza account will be linked to your permanent national Identity Card (NID) number. Your national ID number will remain your unique link to your Ejo eza account for the rest of your life. Your EjoHeza account and your savings will always remain in your name even if you change your job or your home over time. If you are an adult and have a permanent national ID issued by NIDA, you can open your Ejo Heza account free of cost using your own mobile phone by simply dialing *506# for MTN Rwanda and Airtel-Tigo and by following the simple prompts for registration and payment of contributions. You can also open your own EjoHeza account free of cost using a web browser on a smart phone or a computer by visiting EjoHeza, clicking the “Register Now” button and following the simple prompts.
Ejo Heza is a voluntary, government-sponsored scheme available to all the citizens of Rwanda. Anyone working in the formal or informal sector, either self-employed or working for someone else, can join the scheme. The RSSB pension Scheme on the other hand is compulsory and is only available to those who are employed in public or private sector enterprises. Ejo Heza is a defined contribution scheme whereas the RSSB pension scheme is a defined benefit scheme. Members in Ejo Heza will start receiving their monthly pension at 55 years of age whereas members in RSSB start receiving their monthly pension at 65 years or at early retirement of 60. RSSB contributions are a pre-defined percentage of salary and are deducted and remitted on a monthly basis. Ejo Heza members can decide how much they want to contribute and are also permitted to make contributions anytime (daily, weekly, monthly, quarterly or annually) as per their choice.
Today, most people live for around 20 years after they are old (retirement age). So you should save as much as you can while you are working to ensure that you have enough savings to last you for at least 20 years of expenses when you retire. So even if you are already saving in the RSSB pension scheme, putting aside some additional savings into your Ejo Heza account will ensure that you have sufficient savings for a secure and dignified retirement and do not need to depend on others when you are old. Saving with Ejo Heza will also help you to accumulate savings for your other needs like children's education or housing
To open your child's Ejo Heza account, you will need to personally visit an authorized Ejo Heza service provider with your child, submit your child's temporary ID issued by NIDA and link your child's Ejo Heza account to your own national ID number.
A member who is in the first or second category of Ubudehe and has saved at least fifteen thousand (15.000) Rwandan francs has the right to a Government co-contribution equal to one hundred percent (100%) of his or her savings;
- A member who is in the third category of Ubudehe and has saved at least eighteen thousand (18,000) Rwandan francs has right to a Government contribution equal to fifty percent (50%) of his or her savings;
- The Government's contribution to long term savings scheme mentioned cannot exceed eighteen thousand (18,000) Rwandan francs.
- Ubudehe category 4 members who save RwF72,000 or more in Ejo Heza in a year shall also be eligible for the special insurance benefit during the following year. Therefore, if an Ubudehe category 4 member who had saved Rwf72,000 or more in a year, unfortunately passes away next year, the member's nominated beneficiary will be paid a one-time compensation of Rwf1,000,000 along with a one-time payment of Rwf250,000 towards the member's funeral expenses. The annual insurance premium will be paid by the Government on your behalf. Only Rwandan citizens with a permanent National ID (aged 16 years and above) issued by NIDA will be eligible for the life and funeral insurance benefits. N.B. The government co-contribution benefit will be paid into the Ejo Heza accounts of eligible members on an annual basis for the first 36 months following the date of launch of the Scheme.
Note: The life and funeral insurance benefits will also be available to eligible members on an annual basis for a total period of 36 months. The insurance benefits will however become available 12 months after the launch of the Scheme.