The Social Security and National Insurance Trust (SSNIT) has announced a 12 percent upward adjustment in pensions for 2025, in line with Section 80 of the National Pensions Act, 2008 (Act 766).
This takes effect from January 2025, aiming to cushion pensioners and maintain their purchasing power amidst economic changes.
The increment is structured to include an 8 percent fixed rate and a GH¢72.58 flat amount, making up the remaining 4 percent. This redistribution mechanism ensures that low-earning pensioners benefit more significantly, reflecting SSNIT’s commitment to the solidarity principle of social security.
According to SSNIT, the minimum monthly pension, which stood at GH¢300 in 2024, will rise to GH¢396.58 in 2025, marking a 32.19 percent effective increase. Pensioners at the upper end of the scale will see an 8.04 percent increment, with the highest earner receiving GH¢201,792.37 per month under the PNDC Law 247.
The average monthly pension will also climb from GH¢1,776.81 in 2024 to GH¢1,990.03 in 2025. Approximately 63 percent of pensioners, particularly those earning GHS1,814.50 or less monthly, will receive increases ranging from 12 percent to 32.19 percent.
“This year’s indexation has been designed to ensure equity while addressing the needs of the most vulnerable pensioners,” SSNIT management explained in the media release.
Basis for Indexation
The annual indexation process, as mandated by law, is aimed at preserving the value of pensions against inflation. SSNIT stated that it considers several factors in determining the rate, including the average salaries of active contributors, annual inflation rates as indicated by the Consumer Price Index (CPI), and the scheme’s financial sustainability.
The rate is finalized after consultations with the National Pensions Regulatory Authority (NPRA) and approval by the SSNIT Board of Trustees.
SSNIT noted, “This approach ensures that pensions remain sustainable while reflecting wage inflation and the prevailing economic conditions.”
Broader Implications
The increment comes as a relief to pensioners, particularly those in the lower-income bracket, who will see the most significant percentage gains. It also underscores SSNIT’s ongoing efforts to align pension adjustments with economic realities.
The Trust highlighted its commitment to providing regular monthly payments and conducting annual reviews in adherence to its legal mandate.
“We are dedicated to ensuring that pensioners receive their benefits on time and in line with inflationary trends,” the statement added.
Pensioners are scheduled to receive their adjusted payments on the third Thursday of each month, beginning this January.
The post SSNIT Announces 12% Pension Indexation for 2025 appeared first on The Business & Financial Times.
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