SSNIT Increases Monthly Pension Payments by 12% Effective January 2025
The Social Security and National Insurance Trust (SSNIT) has announced a 12% increase in monthly pension payments for beneficiaries, effective January 2025. This adjustment follows SSNIT’s annual indexation process and aligns with Section 80 of the National Pensions Act, 2008 (Act 766), in consultation with the National Pensions Regulatory Authority (NPRA).
Details of the Increment
The 12% increase will be implemented as follows:
- Fixed Rate: 8% for all pensioners.
- Flat Amount: An additional GHS 72.58, representing the remaining 4%, to be redistributed.
As a result, the lowest-earning pensioner will now receive GHS 396.58 monthly, reflecting a 32.19% increase above the 2024 minimum pension payment.
The highest-earning pensioners will see the following adjustments:
- Under PNDCL 247: Monthly pensions rise to GH¢201,792.37.
- Under Act 766: Monthly pensions increase to GH¢28,703.01.
Why Indexation Matters
Indexation aims to maintain the real value of pensions and ensure that beneficiaries’ purchasing power is preserved amidst economic challenges.
The annual indexation process considers the following factors:
- Wage Inflation: Average salary of active contributors from the previous year.
- Consumer Price Index (CPI): Annual average CPI from the previous year.
- Affordability: The impact of indexation on the cost of pensions to the Scheme.
- Sustainability: The effect on the long-term viability of the Scheme.
SSNIT’s Commitment to Pensioners
SSNIT continues to fulfill its mandate of ensuring that retired members under the Scheme receive their pensions monthly and that their payments are reviewed annually to reflect economic realities.
This latest adjustment highlights the Trust’s efforts to protect pensioners from inflation and maintain the sustainability of the pension scheme in Ghana.
