January 21, 2022

Ghana: Social Security and National Insurance Trust increases pension by 10 percent

The Social Security and National Insurance Trust (SSNIT) has increased the monthly pension for beneficiaries by 10 percent.

The increase in the SSNIT monthly pension, called indexation, will take effect from January 2022.

This means that a retiree who received a minimum of GH300.00 per month as a pension last year would now receive GHC332.48 per month.

According to SSNIT, indexation is a technique for adjusting pensions in order to maintain the purchasing power of pensioners.

Announcing the new increase in pension benefits, SSNIT’s director general, Dr. John Ofori-Tenkorang, that the increase was done in consultation with the National Pensions Regulatory Authority.

He explained that the new increase, which was linked to a projected inflation of 9.6 percent in 2022, was intended to improve the purchasing power and living conditions of retirees.

dr. Ofori-Tenkorang said the increase was implemented in a way to help retirees with low pensions get an increase of more than 10 percent.

“All retirees who are on the SSNIT payroll as of December 31, 2021, will increase their monthly pension at a flat rate of 9.68 percent plus a redistributed lump sum of GHC3.44,” he explained.

He said redistribution was a mechanism applied to the indexation rate to protect participants with low pensions in line with the social security principle of solidarity.

“The effective increase in pensions would therefore range from 9.639 percent for the highest earning retiree to 10.83 percent for the lowest pension earner,” he said.