Abstract:
This study aimed at assessing the social security coverage among the informal sectors by focusing on the informal sectors operating in Kinondoni District. The objectives of the study were to assess the social security policy in Tanzania; to identify the efforts taken by pension fund to reach those who are undertaking the informal sector activities; and to assess the benefits offered by pension fund, if at all, they cover the interest of those who are in the informal sector. PPF was selected as a case of this study to represent other social security funds in Tanzania.
The study involved a sample size of 220 respondents who were selected through purposive and simple random sampling techniques. Data was collected by using questionnaires, interviews and documentary review methods. Secondary data was analysed qualitatively through content analysis and primary data was analysed quantitatively by using statistical measures and methods including percentages and tables.
The study found that there are many efforts undertaken by the social security staffs on making the informal sector participants be members of the social security funds. It is also the finding of this study that the policies available do favor the informal sector people. However, the study indicates that there is no enough awareness and customer satisfaction with the benefits offered by social security funds to the informal sector. The study has discover several setbacks which hinder informal sectors to joining the pension funds including the low level of income, uncertainty in regular cash, as well as lack of awareness on the importance of social protection. It is the recommendation of this study that Social security funds should invest in provision of education to the informal sector on the advantages of being members of social security funds as well as the disadvantages of not being members so as to enable members of the informal sector to join social security funds.
