SSNIT Increases Monthly Pension Payments by 12%

The Social Security and National Insurance Trust (SSNIT) has announced a 12% increase in monthly pension payments, effective January 2025. This decision aligns with the Trust’s annual indexation process and is in consultation with the National Pensions Regulatory Authority (NPRA), in accordance with Section 80 of the National Pensions Act, 2008 (Act 766).

All valid pensioners on the SSNIT payroll as of December 2024 will see an average increase of 12% in their monthly pensions. This increment includes a fixed rate of 8% plus a flat amount of GHS 72.58, which represents the balance of 4% to be redistributed.

The lowest-wage pensioner will now receive GHS 396.58, a 32.19% rise above the 2024 minimum pension payment. Meanwhile, the highest-earning pensioner under PNDCL 247 and Act 766 will receive GH¢201,792.37 and GHS 28,703.01 per month, respectively.

SSNIT undertakes this annual adjustment to maintain the real value of pensions, ensuring that beneficiaries can better manage economic pressures. The primary objective of the indexation is to preserve the purchasing power of pensioners.

As mandated by law, SSNIT collaborates with NPRA to determine the appropriate indexation rate each year. Indexation of pensions is a statutory requirement, ensuring that the Trust annually reviews and adjusts pension payments based on wage inflation rates of active contributors or another rate determined in consultation with the Board of the Authority.

Key factors influencing the indexation rate include:

– The average salary of active contributors from the previous year.

– The annual average Consumer Price Index (CPI) from the previous year.

– Affordability and the impact of indexation on the cost of pensions to the Scheme.

– The effect of indexation on the long-term sustainability of the Scheme.

SSNIT remains committed to ensuring that retired members receive their pensions monthly and that these pensions are indexed annually, in accordance with its mandate.