The Public Service Commission (PSC) has introduced a 2.5% deduction from all members of the public service with the funds set to be directed towards a savings and loan facility.
The facility, known as Government Employee Mutual Savings (GEMS) Fund, was launched last week with the government saying the Fund would “cushion… workers and in preparation for a rainy day which can come for any one of us at an unexpected time”.
The 2.5% deduction applies to all civil servants and those who are not interested can opt out by applying to their head of Ministry.
A nominal lending rate of 10 per cent per annum has been set, with lending thresholds set to range from 10 to 15% per annum depending on the actual amount applied for and the desired repayment period.
A circular to government employees released on Tuesday read:
All members of the Public Service regardless of their category are going to receive a 2.5% deduction on their salary during the month of February 2021 and subsequently every month as admission to membership.
After 3 months accrual of contribution, members desiring to access short term to medium term loans will apply through their Head Ministry.
Members who do not wish to join the scheme are free to advise the head of ministry in writing.