Both farmers and farmworkers will contribute to the Agricultural Retirement Fund (ARF) which is estimated to cater for more than 120 000 workers in the agricultural sector.

Farm owners will contribute six per cent towards the ARF and farmworkers five per cent of their salaries.

The Agricultural Employers' Association initiated the establishment of the ARF for agricultural employers in 1986 and the debate was re-opened in 2003 before they agreed on the finer details with the workers' unions.

Initiators of the fund announced last week that the rules of the fund were submitted to the Finance Ministry in November for approval.

Once approved, the founding trustees would enter into a tender process for the appointment of a service provider.

Many agricultural employers do not know what to do with their employees when they become too old to work.

Agriculture Minister Paul Smit said only 20 per cent or around 120 000 economically active Namibians have some provision for a retirement fund.

He said the new fund would tackle a huge social responsibility for the less fortunate members who face hardship in their old age.

According to the fund's rules, 50 per cent of the trustees will be appointed by the Agricultural Employers' Association.

The rest will come from members and organised labour.

Provision is also made for 'special purpose contributions' from non-governmental organisations and international organisations.

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