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Pensions and SSNIT Contributions overview in Ghana.

Pensions and SSNIT Contributions overview in Ghana.
Pensions and SSNIT Contributions overview in Ghana.

The Social Security and National Insurance Trust (SSNIT) is a statutory Public Institution charged under the National Pension Law 2008, Act 766, with the Administration of Ghana’s Basic National Pension Scheme. It is to cater for the 1st Tier of the contributory three tier scheme, which has replaced the PNDCL 247 of 1991.

Social Security in Ghana has gone through three phases:

·         Phase One – Provident Fund Scheme 1965-1990

·         Phase Two – National Pension Scheme 1991-2009

·         Phase Three – 3 Tier Pension Scheme 2010 - date


·         The objectives of the New Pension Law, Act 766 under which SSNIT operates are:

·         To ensure retirement income security for workers.

·         To ensure that every worker receives a retirement and related benefits.

·        To set up uniform rules, regulations and standards for the administration and payment of retirement and related benefits for both Public and Private sector workers.

What then is Social Security?

The ILO has defined Social Security as the protection which society provides for its members through a series of public measures against economic and social distress, that otherwise will be caused by stoppage of substantial reduction of earnings resulting from sickness, maternity, employment injury, invalidity, old age and death. (ILO)

It is simply an arrangement of social protection established by legislation to provide individuals with a degree of income security when faced with contingencies such as old age invalidity or death. It is obligatory and statutory.  The primary responsibility of SSNIT therefore is to replace part of lost income of Ghanaian workers or their dependents due to the death of a member.

Core functions of SSNIT.

·         Register employers/employees

·         Collect contributions

·         Manage records of members

·         Invest the funds of the Scheme

·         Process and pay benefits to eligible members and nominated dependants.


·         Register with SSNIT

·         Register all workers (permanent, contract, casual etc.)

·         Deduct and pay contributions to SSNIT

·         Keep accurate records on remunerations

·         Inform SSNIT of changes on operations, labour force, location and status

·         Make books available to SSNIT officials on demand for routine inspection.


·         Register with SSNIT (not optional)

·         Keep one valid social security number

·         Update records regularly (At least once in 5 years)

·         Repayment of Students Loans

Differences between the old and new pension schemes.

·      Under the PNDC Law 247 (1991), the contribution period is for 240 months (20 years) whilst under Act 766 (2008) the contribution period is 180 months (15 years).

·       Under PNDC law the entry age is 18 years, whilst Act 766 (2008) is 15 years.

·     Under the PNDC law the contribution rate employee was capped at 5% whilst Act 766 (2008) is capped at 5.5%.

·     Under the PNDC law the Contribution rate employer was capped at 12.5% whilst Act 766 (2008) is capped at 13%.

·    Under the PNDC law the minimum contribution was pegged at 17.5% whilst Act 766 (2008) is capped at 18.5%

·    Under the PNDC Law, the cap-on contribution is pegged at any amount, whilst Act 766 (2008) pegs it at GHC20,000.00

·    Under the PNDC Law, the annuity period was pegged at 12 years whilst Act 766 (2008) pegs the annuity period at 15 years. 


·         Total contribution - 18.5%

·         SSNIT = 11%

·         2nd Tier = 5%

·         NHIS = 2.5%


·         Old Age pension

·         Invalidity Pension

·         Death/Survivor’s Lump Sum

·         Return of Contribution + Interest


·        Old Age Pension -15 years’ contribution (55-60years)

·    Invalidity- No Age (12 months’ contribution within last 36 months prior to   becoming an invalid)

·        Death/Survivor’s Lump sum- to nominated dependants

NB: Please take note that regular update is important and should include all dependants.

Act 560 the Children’s Act, and PNDCL 111 can be applied to original nominations when the court orders SSNIT to do so.


·         Students Loan repayment

·         Students Loan Guarantorship

·         Age 54 +projects (to clean data before retirement)

·         Statement of account

·         When to apply for a benefit

·         How to apply

·         Where to apply

·         Life certificate (once in 3 years)

·         Permanent address (very important)

NB: please note that the only thing that cannot be changed is the Date of Birth.  


In a bid to improve operational efficiency, Management of SSNIT has invested heavily in technology by procuring the Operational Business Suite (OBS) which has 8 modules to provide speedy and quality service in our business processes.  The OBS is to improve customer service delivery, Manage and enhance our core activities and Improve operational efficiency


·         To implement a centralized system that is accessible to all stakeholders

·         Implement an integrated application for effective administration of Pensions


·         To provide multiple service delivery

·         To reduce member registration cycle time

·         To reduce fraud

·         To eliminate multiple member registration

·         To reduce benefits processing time

The ongoing enrolment and re- enrolment exercise for existing active members and Pensioners is one of the modules of OBS.

Another module is the information kiosk (e.g. like ATM Machines which would be mounted at vantage points)

Functions of the Information kiosk will include:

·         View member information

·         Update member information (nominee update)

·         Confirm life certificate

·         View and print certificate

·         Lodge complaint

·         Request for portal ID (NET)

·         View beneficiaries/nominees

·         View benefits processing status

These services will be available and accessible to all members with valid smart cards 24/7

Requirement for enrolment and re-enrolment (registration);

Any one of the valid National ID’s

·         Passport

·         Driver’s License

·         NHIS Card

·         Voter’s ID

·         NIA Card

Your comments and views are welcome in the comment section below. And for further consultation or questions, please email to contactcentre@ssnit.org.gh

Also Read: Sunyani Technical University (STU) student portal.

Source: HR Forum News

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