The Social Security and National Insurance Trust (SSNIT), in consultation with the National Pensions Regulatory Authority (NPRA) has increased the maximum and minimum insurable earnings for 2023.
The maximum insurable earnings have been increased to GH¢42,0000.00 from the initial GH¢35,000.00.
The upward adjustment is in accordance with Section 63(3) of the National Pensions Act 2008 (Act 766).
Following the raise in the National Daily Minimum wage, which is now GH¢14.88 for 2023, the minimum insurable earnings for 2023 has also risen to GH¢401.76 from GH¢365.33.
“In effect, from 1st January 2023, the maximum and minimum contributions payable to SSNIT will be GH¢5,670.00 and GH¢54.24 respectively.
“Employers and Members of the SSNIT Scheme who are affected by the revised maximum and minimum insurable earnings are to note and ensure the right contributions are paid.”
SSNIT
SSNIT is a government-established organization responsible for administering the Basic National Social Security Scheme, which is the first tier of the three-tier pension plan outlined in the National Pensions Act 2008.
SSNIT has been charged with the responsibility to provide financial support to individuals and their dependents in cases of old age, disability, emigration, or death, by replacing a portion of lost income.
The amount of pension that a member can receive is based on the individual’s basic salary and the length of time they have been contributing to the scheme.
The National Pensions Act 2008 (Act 766), Section 63(3)
The National Pensions Act 2008 (Act 766), is a scheduled act designed by the Parliament of the Republic of Ghana and provides for pension reform in the country.
Act 766 does this reformation by:
“The introduction of a contributory three-tier pension scheme; the establishment of a National Pensions Regulatory Authority to oversee the administration and management of registered pension schemes and trustees of registered schemes, the establishment of a Social Security and National Insurance Trust to manage the basic national social security scheme to cater for the first tier of the contributory three-tier scheme, and to provide for related matters.”
Pensions Act 766
Section 63(3) of this Act indicates that despite subsection (1), the maximum contribution shall not exceed thirteen and half per centum of a maximum amount that may be determined periodically by the Trust in consultation with the Board of the Authority.
Subsection (1), which is Section 63(1) says an employer shall remit thirteen and half per centum out of the total contributions of eighteen and a half per centum on behalf of the worker to the first tier mandatory social security scheme within fourteen days after the end of each month to the Trust.
