Good practice in contribution collection system: The case of the Public Servants Social Security Agency of Ethiopia

According to the Public Servants’ Pension proclamation No. 345/2003, the pension contribution was to be collected from every employer on a monthly basis and transferred to the pension fund account within a month time after the payment of monthly salaries. Even though this is clearly stipulated in the pension proclamation, it is very difficult to collect the contribution efficiently (both in terms of time and the right amount). One of the major challenges the agency faced in collecting the pension contribution was related to the system. The Agency was expected to collect the contribution from about 4,000 government organizations all over the country, making the process cumbersome, time consuming and requiring a lot of labour force to enforce the contribution collection. The other challenge was the lack of a strong enforcement mechanism for employers who were not able to comply. In order to address this critical problem, the Agency has under taken a re-engineering of its business processes mainly aimed at enhancing its operational efficiency. The re-engineering of business processes has dramatically changed the pension contribution collection system, making it more efficient.

Award Region
Award Year
2017
Country
Region
Main country
Main region