Ghana's Social Security plans to spend an extra GH¢243 million this 2020, here's why

The Social Security and National Insurance Trust (SSNIT) in Ghana has disclosed that it will spend an additional GH¢243 million in paying pensioners on the scheme this year.

Director-General of SSNIT, Dr John Ofori-Tenkorang

This, according to the trust, is due to the 6.6 percent upward adjustment of monthly pensions in 2020 it announced in December last year.

The adjustment means that lowest-earning pensioner will benefit from a total increase of 19percent which translates to GH¢357, an improvement from GH¢300 they previously earned.

The Director-General of SNNIT, Dr John Ofori-Tenkorang who disclosed the information noted that despite the upward adjustment, called indexation, there are still concerns that pensioners on the scheme earn too little which leaves many destitute in their retirement age.

He added that it is outside the control of the Trust as benefits of pensioners are determined based on how much they contributed to the scheme during their active service.

Mr Ofori-Tenkorang, hence, advocated that contributions should be based on the full take-home salary of workers (including allowances) rather than just the basic salary which, in most cases, has been structured to be very small to pay little to the scheme.

“That discussion has to be had by two key stakeholder groups-labour and employers. The 13.5 percent that comes to SSNIT is from the employer and the worker. So, if you have to change the amount, that conversation must come from those two stakeholder groups. It has been raised, and I am sure this year, the interested parties will take it on and have that discussion,” he said.

Adding that “As for SSNIT, our job is to lay out the roadmap and point out the landmines and the pitfalls along the journey from seeking employment to retirement. It is a conversation that will have to be had.”

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