Here’s Why You Should Have A Retirement Saving Plan For Your Domestic Managers

By Soko Directory Team / Published August 28, 2023 | 1:50 pm



Financial Security

We all know our lives revolve around our Domestic Managers (DMs), Watchmen(watchies), and the general home managers in the villages. These are the people who make our worlds tick in their own small but very big ways and much as once in so many times they play us dirty, we pray for their blessings because how could we survive without such humans?

That ‘soja’ who keeps vigil at the gate the whole cold night and the nanny who rocks your baby to sleep at 2356 Hours when you’re deep asleep?

Truth is, we might not be paying these awesome humans enough but again, we all hardly get paid enough, no? With the current tax that awaits our payslips at the end of the month, and a Kilogram of sugar that’s now retailing at Ksh. 250, who gets paid enough, in Kenya?

Read Also: The Importance Of Retirement Savings And Utilizing The NSSF In Kenya

I know we don’t employ these people under any written contract hence this makes it hard to have sober financial conversations with them, including but not limited to saving for retirement. It’s funny and sad how retirement has been painted and defined as meant for people in formal employment only as if those in the informal sector never get old! We all get to senior citizenship,  don’t we?

Read More:

Let’s agree on one thing – all of us deserve the retirement of our dreams, the best life when our knees are cracky and our backs can’t bend. But with the current crippled socio-economic situation, things might not get to what we dream of, later in life. Retirement plans are ideally meant for those in formal employment – this is what we’ve been customed to believe.

In 2013 the High Court of Kenya ruled and placed Domestic workers under the  Employment Act hence they are covered by the National Minimum Wage including other provisions of the law. Registering our DMs, watchies, herdsmen, and errand boys for the National Social Security Fund – NSSF is something that we don’t take seriously but this is one of the greatest benefits that such low-wage employees can have in their old age.

Read Also: Unpacking The Performance Of Retirement Schemes In Kenya’s Financial Landscape

I know you’d ask how often we should because, you know, these people can wake up after theory 7 days and say they’re leaving, so what happens? But again, is even us in the formal employment sector there’s the ‘hire and fire’ rule? That aside, don’t we resign and venture into other fields, or even get greener pastureland on the other side of the field? Instability or lack thereof should not worry you – you need to get that Domestic Manager registered for their retirement benefits.

Having money conversations with your employees and making them understand why having a saving plan for them, for their later years is a good idea is one of the best financial gifts you can offer to them. Encourage them to save for their children’s education, for Christmas shopping, and throw in the retirement benefits. Haba na Haba hujaza kibaba and their kibaba will be full by the time they hit fifty-five.

See, these people won’t be house girls forever. They won’t watch over gates or be gardens for the rest of their lives. Having a saving plan for them will see them enjoy benefits during their sunset years. The good thing is, that they can save as little as they can afford easily via their mobile phones. So hey, be a good employer and make a difference in your essential people’s lives – encourage them to save and be part of this plan, practically.

Read Also: TSC Makes Changes On The New Retirement Age for Teachers

By Diana Makokha




About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

View other posts by Soko Directory Team


More Articles From This Author








Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2024
  • January 2024 (238)
  • February 2024 (227)
  • March 2024 (190)
  • April 2024 (100)
  • 2023
  • January 2023 (182)
  • February 2023 (203)
  • March 2023 (322)
  • April 2023 (298)
  • May 2023 (268)
  • June 2023 (214)
  • July 2023 (212)
  • August 2023 (257)
  • September 2023 (237)
  • October 2023 (266)
  • November 2023 (284)
  • December 2023 (176)
  • 2022
  • January 2022 (293)
  • February 2022 (329)
  • March 2022 (358)
  • April 2022 (292)
  • May 2022 (271)
  • June 2022 (232)
  • July 2022 (278)
  • August 2022 (253)
  • September 2022 (246)
  • October 2022 (196)
  • November 2022 (232)
  • December 2022 (167)
  • 2021
  • January 2021 (182)
  • February 2021 (227)
  • March 2021 (325)
  • April 2021 (259)
  • May 2021 (285)
  • June 2021 (272)
  • July 2021 (277)
  • August 2021 (232)
  • September 2021 (271)
  • October 2021 (305)
  • November 2021 (364)
  • December 2021 (249)
  • 2020
  • January 2020 (272)
  • February 2020 (310)
  • March 2020 (390)
  • April 2020 (321)
  • May 2020 (335)
  • June 2020 (327)
  • July 2020 (333)
  • August 2020 (276)
  • September 2020 (214)
  • October 2020 (233)
  • November 2020 (242)
  • December 2020 (187)
  • 2019
  • January 2019 (251)
  • February 2019 (215)
  • March 2019 (283)
  • April 2019 (254)
  • May 2019 (269)
  • June 2019 (249)
  • July 2019 (335)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (313)
  • November 2019 (362)
  • December 2019 (318)
  • 2018
  • January 2018 (291)
  • February 2018 (213)
  • March 2018 (275)
  • April 2018 (223)
  • May 2018 (235)
  • June 2018 (176)
  • July 2018 (256)
  • August 2018 (247)
  • September 2018 (255)
  • October 2018 (282)
  • November 2018 (282)
  • December 2018 (184)
  • 2017
  • January 2017 (183)
  • February 2017 (194)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (189)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (164)
  • February 2016 (165)
  • March 2016 (189)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (247)
  • September 2016 (233)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (164)
  • April 2015 (107)
  • May 2015 (116)
  • June 2015 (119)
  • July 2015 (145)
  • August 2015 (157)
  • September 2015 (186)
  • October 2015 (169)
  • November 2015 (173)
  • December 2015 (205)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950