Efficiency, Accountability and Integrity

Mixed reaction towards SSNIT’s 15 percent monthly pension increment

January 17, 2024

There is a mixed reaction by some pensioners in Tema to the news of the Social Security and National Insurance Trust (SSNIT) 15 per cent monthly pension increment.

While some described it as a drop in the ocean, others said it was better than nothing.

SSNIT has increased monthly pensions by 15 per cent for 2024, based on the National Pensions Act.

Speaking to the Ghana News Agency in Tema, Mr. Samuel Boateng praised SSNIT’s move, stating, “It’s a positive move by SSNIT, but noted that the lower-income earners must have a higher appreciation of the base percentage to reduce the economic burden on them.”

Also, he highlighted the increment’s contribution to providing more financial flexibility, acknowledging that while it may not address all challenges, every bit helped, especially considering the escalating costs of basic needs.

Mr. John Tawiah, a pensioner for two decades speaking to GNA, stated the importance of considering the overall economic situation and acknowledged the positive step of the 15 per cent increment but suggested continuous monitoring and adjustments to keep pace with the ever-changing cost of living.

Mr. Benjamin Asiedu, another pensioner, speaking to GNA, stated that the additional funds would now help pensioners to meet essential expenses that were becoming increasingly challenging before.

He explained that all workers contributed about 17 percent of their salary into their SSNIT fund, which helped the fund administrator to invest and earn profit from it. “Workers should not be made worse off after retirement.”

Other pensioners and some public and civil servants in Tema also supported the call for pensions to increase periodically but rejected the 15 percent, stressing that it is woefully inadequate. A minimum 40 per cent increment for all those earning below GHC 2,000.00 would have been a major support.

Valid regular pensioners would see a fixed 10 per cent raise plus an extra ¢79.10; minimum-wage pensioners will now receive GHC409.10, which is 36.37 percent more than in 2023.

Also, the highest-earning pensioner would get GH¢186,777.58 monthly.

SSNIT’s adjustment aims to help pensioners cope with the expected 20 per cent wage inflation and 23.16 per cent overall inflation in 2024.

SSNIT information available to the Ghana News Agency in Tema indicates that the amount one receives as monthly pension reflects basic salary insured during active service.

It also explained that if a contributor dies before 75 years, a one-time lump sum is paid to the validly nominated dependent. This benefit is called Survivors benefit.

Source: GNA