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Private Organization Employee Social Security Schemes

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Private Organization Employee Social Security Scheme

Program Summary

As part of expanding the social security scheme, the Government of Ethiopia established Private Organization’s Employee Social Security Agency (POESSA) in 2011 to manage the private sector social security fund. The benefits available under the proclamation are retirement pension, invalidity pension, incapacity pension, or survivors’ pension. The proclamation is applicable to salaried employees working in a private organization and charities for at least forty-five days over a definite or indefinite period or on a piece of work.

Program Objective

  • The main objective of the scheme is to register and issue pensions, collect pension contributions, determine pensions, and pay, and administer pensions for private and non-governmental organizations’ employees.

 

 

 Entitlement

  • Old age Retirement pension beneficiaries- who have completed 10 years of service gets 30% of his/her average salary for the last three years preceding retirement and shall be increased, for each year of service beyond 10 years by 1.25%.
  • Survivors' Pension and Gratuity entitlement
    • Widow’s or Widower’s Pension (50% of the pension to which the deceased would have been entitled).
    • Surviving Child's Pension (20% of the pension to which the deceased would have been entitled
    • Surviving Parent’s Pension: pension payable to each parent shall be 15% and if there are no survivors other than the parents, the pension shall be 20%).
  • Invalidity Pension- shall receive invalidity pension for life
  • Invalidity Gratuity- shall receive a lump sum at one time.

 

Type of Client and Coverage

  • Old age active Pension contributors- 1,913,628
  • Old age Retirement pension beneficiaries- 43346
  • Survivor’s pension beneficiaries- 25775
  • Employment Injury clients-7,642

 

 Eligibility

  • Employees of the Private sector or charity who have completed at least 10 years of service and retires upon attaining the retirement age of 60
  • Employee paid a salary for 45 days and registered
  • Having pension number/registration
  • an employee who has completed at least 20 years of service and leaves the service by voluntary resignation or early retirement receives a retirement pension by age 55 years.
  • A public servant who has completed at least 10 years of service and separates from service due to health problems preventing him from engaging in any remunerated work shall receive an invalidity pension for life
  • Being Surviving parents (Mother or father)
  • Widow’s or Widower’s, Surviving Child
  • Being an employment Injury worker certified by accredited medical personnel

Moreover, the beneficiary is excepted to fulfill at least two of the criteria to be eligible.

Click on http://www.socialprotection.gov.et/ for more information

 

Available Documents

POESSA Proclamation-1268-2014EC-POESSA

POESSA – Private Organization Employees' Social Security Administration