EMPLOYEES’ PERCEPTION TOWARDS THE NEW PRIVATE ORGANIZATIONS’ EMPLOYEES’ PENSION SCHEME: THE CASE OF CLINTON HEALTH ACCESS INITIATIVE

Abstract

The newly implemented Private Organizations’ Employees Pension, Proclamation No.715/2011 is one of the government’s efforts to bring social security and well being of citizens in particular for the private organizations employees. Before the commencement of this proclamation some private organizations were providing provident fund, which is a matching fund by employer and employee, and other organization were not. After the start of the new pension scheme, all private organizations were forced by law to implement the scheme for their employees. Non- Governmental Organizations, which are categorized as private organizations in the proclamation, are also starting this new pension scheme from June 2011, by asking their employees to vote either to continue with their existing provident fund scheme or join the new private organizations’ employees’ pension scheme. Those who joined the organization after June 2011 should be under the new pension scheme by default. Different reactions are observed from employees on this new pension scheme, some welcome it and some are not happy with it. Hence, this study tried to see the perception of employees towards this new private organization’ employees’ pension scheme in relation to various factors that influence perception. As employees previous scheme coverage has its own contribution on the perception towards the new pension scheme the study was conducted at Clinton Health Access Initiative where both Provident fund and the new pension schemes are existing. The researcher has used questionnaire for employees and structured interview discussions form management of the organization. The study findings indicate that employees’ perception towards the new pension scheme is mainly affected by lack of adequate information and explanation on the contents of the new pension scheme. Other factors like individuals experience, life style, situations and peers have also its own share on employees’ perception towards the new pension scheme. Hence it is recommended to make an awareness creation programs for employees in an organized manner and employer organization and government agency should look and work on other situational factors, like for those project based employee, that influenced employees perceptions.