The Social Security and National Insurance
Trust (SSNIT), in consultation with the National
Pensions Regulatory Authority (NPRA) and in line with Section 80 of the National Pensions Act, 2008 (Act 766), has indexed monthly pensions upwards by 12% for the year 2025.
According to SSNIT in a statement issued on Monday (January 6, 2025) the primary objective of the indexation is to maintain the purchasing power of pensioners.
“SSNIT as prescribed by law works with NPRA to arrive at the right indexation rate for pensions every year. Indexation of pensions is thus an annual requirement by law” it clarified.
“The Trust shall annually review the pension payment which shall be indexed to
wage inflation rates of active contributors or another rate determined by the Trust in consultation with the Board of the Authority” the statement added.
As part of its mandate, SSNIT ensures that retired members under the Scheme receive their pensions monthly and their pensions are indexed annually.
Meanwhile, this year’s increment shall be implemented as follows:
All pensioners on the SSNIT Pension Payroll as
at 31st December, 2024 will have their monthly
pension increased by an average of 12%. This
will be made up of a Fixed Rate of 8% plus a flat
amount of GH¢72.58, which is the balance of 4%
that is to be redistributed.
Redistribution is a mechanism applied to the
indexation rate to cushion low-earning pensioners in conformity with the solidarity principle of social security. As a result, pensioners will have an effective increment between 32.19% at the bottom end and 8.04% at the top end.
Redistribution ensures that the minimum monthly pension of GH¢300 in 2024 will increase to GH¢396.58 in 2025, an effective increase of 32.19%. The highest-earning SSNIT pensioner who is under the PNDC Law 247, as at 31st.
