The Government of Rwanda has clarified that recent changes to public service laws do not result in any salary increases or reductions for public servants, stating that the changes focus on adjusting allowances to align with ongoing pension reforms.
In a statement issued on May 26, the Ministry of Public Service and Labour said the legal amendments leave the salary structure unchanged and do not alter how public servants are paid.
“Under the General Statute Governing Public Servants, salaries are determined through the institution’s salary structure, which is approved by the cabinet. The salary amounts are based on the institution’s index value, the position level within the structure, and the responsibilities attached to the position,” stated the government of Rwanda.
Government of Rwanda Clarifies Salary Structure and Allowances
The ministry said salaries will still be set using structures approved by the Cabinet, based on job level, institutional value, and the responsibilities of each role.
The clarification follows the passage of Law No. 017/2026, which updates parts of the 2020 law governing public servants.
According to the ministry, these changes are meant to improve and harmonize the way institutions apply special statutes, rather than adjust salary levels.
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Officials further noted that institutions with specialized mandates will continue to have their salaries determined by their respective Boards of Directors, in line with existing practice.
Alongside the law, a Prime Minister’s Order issued on April 25, 2026, introduced revisions to allowances for public servants. The government said these updates were necessary to align compensation with pension reforms that came into effect on January 1, 2025.
The ministry stressed that public servants’ take-home pay remains unchanged. The changes affect only the gross figures used in calculations, while net earnings stay the same.
The statement also clarified how responsibility allowances are applied across the public service.
“The responsibility allowance is not allocated to leaders. Rather, it is granted to all public servants who, in accordance with the organizational structure, supervise subordinates at the same level. For instance, a Director of Finance supervising finance management specialists is entitled to such an allowance because they are otherwise on the same position level,” stated the government.
Housing, transport, and responsibility allowances also remain unchanged in net terms, with only technical adjustments made to reflect pension-related contributions.
The government said the reforms are aimed at ensuring fairness, consistency, and transparency in public sector compensation while keeping the system aligned with broader pension policies.
Pension Reforms Spark Confusion
The changes are tied to pension reforms introduced by the Rwanda Social Security Board (RSSB), which have altered how deductions are calculated and allowances are determined.
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From January 1, 2025, mandatory pension contributions for formal sector workers, including public servants, increased from 6% to 12% of earnings.
The contributions are shared equally between employers and employees. In addition, the contribution base was expanded to include other earnings such as transport allowances.
Explaining the move at the time, Finance Minister Yusuf Murangwa said the increase was necessary to strengthen the country’s pension system.
“The decision to increase workers’ contributions from 6% to 12%, beginning January 2025, is not just timely but it is something that we needed to do now rather than later,” he said during a government briefing on the reforms.
The Prime Minister’s Order, issued on April 25, 2026, and later published on May 22, 2026, changed how responsibility, housing, and transport allowances are calculated to match the higher pension contributions.
The order also replaced the previous flat responsibility allowance of about 5% with a new coefficient-based formula applied to basic salary.
This shift in calculation led many to believe that public servants’ salaries had been changed, even though their actual take-home pay remained the same.
