The Social Security and National Insurance Trust (SSNIT) has announced a 12% increase in monthly pension payments for 2025, effective from January.
This increase follows the Trust’s annual indexation process, which aims to maintain the real value of pensions in line with economic conditions.
The increment, made in consultation with the National Pensions Regulatory Authority (NPRA), complies with Section 80 of the National Pensions Act, 2008 (Act 766).
It is designed to support pensioners by ensuring that their payments keep up with inflation and other economic pressures.
Breakdown of the Increase:
- All valid pensioners on the SSNIT pension payroll as of December 2024 will see an average increase of 12%.
- The adjustment is composed of an 8% fixed rate, with a flat amount of GHS 72.58 to cover the remaining 4%, redistributed across all pensioners.
- The lowest-wage pensioner will now receive GHS 396.58, marking a 32.19% increase over the 2024 minimum pension.
- The highest-earning pensioner under PNDCL 247 and Act 766 will receive GHS 201,792.37 and GHS 28,703.01 per month, respectively.
The primary goal of the pension indexation is to maintain the purchasing power of pensioners and ensure that pensions are adequate to meet economic demands. SSNIT, in collaboration with the NPRA, uses various factors to determine the annual indexation rate, including:
- The average salary of active contributors from the previous year.
- The annual average Consumer Price Index (CPI) of the previous year.
- The affordability of the pension adjustments and their impact on the overall cost to the scheme.
- The long-term sustainability of the pension scheme.
SSNIT’s legal responsibility is to ensure that pensions are adjusted each year to reflect changes in wage inflation, ensuring pensioners can cope with rising costs of living.
The pension adjustments are a requirement under the National Pensions Act, 2008 (Act 766), which mandates the annual indexation of pensions to ensure they remain relevant in the face of inflation and other economic shifts.
Through this annual adjustment, SSNIT continues its commitment to providing fair and sustainable support to pensioners, enhancing their quality of life during retirement.