How to set monthly dues for your savings or welfare group
A simple method for choosing monthly dues that members can keep paying — affordability, welfare costs, savings goals, minimums vs fixed amounts, and when to review.
Setting dues is a balancing act. Too low and the fund can't do anything useful; too high and members fall behind, which is worse than a small fund. Here's a straightforward method.
Step 1: Start from what members can always afford
The right minimum is the amount nearly every member can pay in their worst month — not their average month. A fund where 95% of members pay GHS 50 on time is far healthier than one where 60% manage GHS 150.
A quick way to find it: ask members anonymously what they could commit to every month without strain, and use the amount that 80–90% of them can meet.
Step 2: Cost the welfare cover
If part of each contribution funds welfare, work backwards from the cover you want. Suppose:
- 60 members;
- you expect roughly 4 funeral claims (GHS 1,500 each) and 6 medical claims (GHS 800 each) per year;
- that's GHS 6,000 + GHS 4,800 = GHS 10,800 a year;
- divided by 60 members over 12 months = GHS 15 per member per month.
Add a safety margin — say 20% — and you'd set a welfare premium of about GHS 18. Details in welfare packages explained.
Step 3: Add the savings portion
Whatever remains after the premium goes into each member's savings (and shares). If the minimum is GHS 50 and the premium is GHS 18, each member saves at least GHS 32 a month — about GHS 384 a year before any dividends.
Step 4: Choose minimum vs fixed
| Approach | How it works | Best for |
|---|---|---|
| Fixed | Everyone pays exactly the same | Merry-go-rounds, where the pot must be equal |
| Minimum + optional extra | Everyone pays at least X; can pay more | Savings funds with shares |
In a savings fund, "minimum plus optional extra" is usually best: members who save more own more of the fund, which is fair and encourages saving. In a merry-go-round, everyone must pay the same.
Step 5: Set a due date and a late rule
Choose a due day shortly after most members get paid — for salaried members, often the 5th or 10th of the month. Payments after that day count as late. Decide how missed months affect a member's standing; see what to do when a member doesn't pay.
Step 6: Make paying effortless
Collection by mobile money with automatic reminders removes most late payments. See collecting dues with mobile money and WhatsApp reminder templates.
Step 7: Review once a year
At each AGM, look at the collection rate, welfare claims and loan demand. Raise dues only if the evidence supports it, and give members at least a month's notice.
Common mistakes when setting dues
- Copying another group's amount without checking what your members can afford.
- Forgetting welfare costs, so the reserve runs dry in the first bad year.
- Changing dues mid-year, which makes records and member planning harder.
- No due day — "sometime this month" invites late payments.
Try the numbers
AwaFund's growth simulator lets you slide member numbers, dues and lending to see how a fund could grow over five years. When you're ready, start a fund and set your minimum dues, due day and welfare premiums in the settings.
Frequently asked questions
Should everyone pay the same amount?
A common approach is a fixed minimum that everyone pays, with members free to contribute more. Extra contributions buy more shares, so members who save more own more of the fund.
How often should we review dues?
Once a year at the AGM is usually enough. Changing dues more often makes it hard for members to plan.
This guide is general information to help groups organise themselves. It isn't financial, tax or legal advice — rules for savings groups differ by country, so check with a qualified adviser for your situation.