The Social Security and National Insurance Trust (SSNIT) has announced a 12% increase in monthly pension payments, effective January 2025.
This adjustment aligns with SSNIT’s annual indexation process and is carried out in consultation with the National Pensions Regulatory Authority (NPRA) as mandated by Section 80 of the National Pensions Act, 2008 (Act 766).
All valid pensioners on the SSNIT payroll as of December 2024 will benefit from this increase, which comprises an 8% fixed rate and a flat amount of GHS 72.58, redistributing the remaining 4%.
As a result of this adjustment, the minimum pension payment will rise to GHS 396.58, representing a 32.19% increase over the 2024 minimum. Meanwhile, the highest-earning pensioners will now receive GHS 201,792.37 under PNDCL 247 and GHS 28,703.01 under Act 766.
Why Indexation?
The primary goal of SSNIT’s annual indexation is to preserve the purchasing power of pensioners, ensuring they can cope with economic pressures. SSNIT determines the indexation rate in collaboration with the NPRA, considering factors such as:
- Average salary of active contributors from the previous year.
- Annual average Consumer Price Index (CPI).
- Affordability and the financial impact on the Scheme.
- Long-term sustainability of the pension system.
Legal Mandate
As stipulated by law, SSNIT reviews and adjusts pension payments annually to maintain their value in relation to wage inflation or another appropriate rate determined in consultation with the NPRA Board. This commitment ensures that retired members under the Scheme receive fair and sustainable pensions, helping them maintain their standard of living throughout retirement.
