The Member of Parliament for Upper Denkyira East Constituency and Deputy Minister Nominee for the Ministry of Employment and Labor Relations, Hon. Festus Awuah Kwofie, has indicated that the existing law on pension does not permit the pension age to be increased.
He argued that the age limit of 60 years is favorable as Ghana’s population hugely consists of youth hence the old must leave the workforce for the youth to be absorbed into it. He indicated that increasing the pension age will increase the number of unemployed youths and argued that the pensioner can work in other fields even after pension.
Hon. Awuah Kwofie further stated that the Tier 1 pension scheme, which is solely managed by the Social Security and National Insurance Trust (SSNIT), between 2016 and now has grown in figures adding about two million pensioners to the scheme. He disclosed that about 600,000 people from the informal sector were added to the scheme in 2023.
He assured that the increase in access to the Tier 1 pension scheme is encouraging and bodes well for Ghana’s future regarding pensions. He indicated that the finances of the SNNIT are on the right course.
“Mr. Chair, the total assets under management of SSNIT were given as GH₵ 15 billion; I am therefore very surprised that the government will still be owing SSNIT to the tune of more than GH₵ 2 billion. If I’m given the confirmation, I will cross-check these figures and advise the Minister”.
Hon. Festus Awuah Kwofie
Moreover, he indicated that out of over 4000 labor agitation claims that the Ministry received over the years, the Ministry was able to resolve 64% of them. He argued that the Ministry has done incredibly well with handling issues of labor relations and conditions of service of workers in the last seven years with calmness and patience.
Influence of Economy on Labor Force
Accordingly, Hon. Awuah Kwofie stated that the labor force of every country is affected by the economic performance of the country. He argued that the performance of an economy will influence the minimum wage and workers’ agitation for improved conditions of service.
He also argued that factors such as rare capital, inflation, and GDP growth that influence the increase in the minimum wage are all economic factors. He indicated that these factors affect productivity and in instances where there is a negative effect on productivity, companies may fold up leading to unemployment.
Moreover, the Member of Parliament detailed the need to strengthen governance and labor administration. He argued that improving the capacity of labor administration will solve issues of underpayment, especially in the private sector. He noted that the Ministry is doing well in its attempt to solve issues relating to underpayment as complaints regarding the issue have reduced.
He indicated that the risks of unemployment among the youth are obvious to society hence successive governments over the years have put their best effort into ensuring that the youth are constantly absorbed into the labor force.
“Mr. Chair, the mandate of the Ministry of Employment is to coordinate the employment from the various ministries or sectors. It is a comprehensive sectorial approach; the Ministry directly doesn’t implement the employment of people in the other ministries”.
Hon. Festus Awuah Kwofie
Hon. Awuah Kwofie further noted that between 2016 and 2023, the Youth Employment Agency (YEA), has been committed to providing the youth with the needed skill sets and jobs. He stated that even though the YEA intervention saw a downturn in 2020 due to COVID-19, it is back on track however, like every other initiative, it needs some improvements.
The Member of Parliament made these submissions during his vetting for the position of Deputy Minister of Employment and Labor Relations conducted by the Appointments Committee of Parliament to consider the nominees of the President to the various ministries.
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