Ministerial Order determining Compensatory Benefits and Cash Value of Benefits in Kind Under Mandatory Pension Scheme

Citation
Ministerial Order 2 of 2016
Date
2 May 2016
Language
English
Type
Legislation
Rwanda

Ministerial Order determining Compensatory Benefits and Cash Value of Benefits in Kind Under Mandatory Pension Scheme

Ministerial Order 2 of 2016

The Minister of Finance and Economic Planning;Pursuant to the Constitution of the Republic of Rwanda of 2003 revised in 2015, especially in Articles 121, 122 and 176;Pursuant to Law n° 05/2015 of 30/03/2015 governing the organization of pension schemes, especially in Article 7;After consideration and approval by the Cabinet;HEREBY ORDERS:

Article One – Purpose of this Order

This Order determines compensatory benefits and cash value of benefits in kind under mandatory pension scheme.

Article 2 – Allowances with compensatory character not subject to contribution

Allowances with compensatory character not subject to contribution include the following:1°transport allowances;2°mission fees;3°communication fees;4°family allowances;5°medical expenses;6°cost of expensive living allowances;7°entertainment allowances;8°safety and sanitation allowance;9°tools allowance;10°any other allowance that may be considered as such.

Article 3 – Benefits in kind subject to contribution

Benefits in kind subject to contribution are goods or services that are provided free of charge or on favorable terms for personal use by the employer to the employee.Benefits in kind subject to contribution include the following:1°accommodation;2°mobile tools of communication;3°sports and recreational facilities;4°payment of leave or vacation facilities;5°payment of meals;6°company shares;7°work uniforms;8°any other allowance that may be considered as such.

Article 4 – Cash value of benefits in kind

The value of goods or services provided as benefits in kind are their acquisition value.In case the acquisition value cannot be applied, the value of the benefit is determined on the basis of the Government policy establishing the value of components of remuneration for public servants.Contributions on benefits in kind are deducted from the month within which the service or good is provided.

Article 5 – Repealing provision

All prior provisions contrary to this Order are repealed.

Article 6 – Commencement

This Order comes into force on the date of its publication in the Official Gazette of the Republic of Rwanda.
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History of this document

02 May 2016 this version
Commenced
19 April 2016
Assented to