The Social Security and National Insurance Trust (SSNIT) in consultation with the National Pensions Regulatory Authority (NPRA) has increased minimum pension payments to pensioners to Ghs 300.00.
The increment in minimum pension payment reflects a 10 per cent increment in monthly pension payments by SSNIT.
SSNIT in a press release on Thursday, January 7, 2021, indicated that all pensioners on the SSNIT Pension Payroll as at December 31, 2020, will have their monthly pension increased by a Fixed Rate of 9.34 per cent.
The increment according to the release, “represents the annual average price inflation, plus a redistributed flat amount of Ghs 6.47.”
“Redistribution is a mechanism applied to the indexation rate to cushion members on low pensions in line with the solidarity principle of social security. Low pensions arise as a result of low basic salaries on which contributions were paid,” added SSNIT.
SSINT further stated the new Ghs 300 minimum pension which is in accordance with Section 80 of the National Pensions Act 2008 (Act 766), and set to take effect from January 2021 will paid to all pensioners.
This implies pensioners whose computed monthly pensions fall below Ghs 300 will be placed on this new minimum.
Also, Pensioners already receiving the minimum pension of Ghs 300 as of December 31, 2020, will have their monthly pensions increased to Ghs 334.49, representing an effective increase of 11.5 per cent.
