SSNIT increases monthly pension payment by 12% for 2025
The Social Security and National Insurance Trust (SSNIT) has announced a significant increase in monthly pension payments, effective January 2025. This 12% increment is part of SSNIT’s annual indexation processes, aimed at maintaining the real value of pensions to help beneficiaries cope with economic pressures.
In consultation with the National Pensions Regulatory Authority (NPRA) and in line with Section 80 of the National Pensions Act, 2008 (Act 766), all valid pensioners on the SSNIT pension payroll as of December 31, 2024, will receive an average 12% increase in their monthly pensions. This increment comprises an 8% fixed rate and a flat amount of GHS 72.58, which is the balance of 4% to be redistributed.
As a result of this increase, the lowest-wage pensioner will receive GHC396.58, representing a 32.19% increase above the 2024 minimum pension payment. On the other hand, the highest-earning pensioner under PNDCL 247 and Act 766 will now receive GH¢201,792.37 and GHS 28,703.01 per month, respectively.
SSNIT undertakes this annual indexation to maintain the purchasing power of pensioners, ensuring that they can better cope with economic pressures. The primary objective of indexation is to adjust pensions to reflect changes in the cost of living, thereby protecting the real value of pensions.
The rate of indexation for pensions depends on several factors, including the average salary of active contributors from the previous year, the annual average Consumer Price Index (CPI) from the previous year, affordability, and the impact of indexation on the cost of pensions to the Scheme. Additionally, SSNIT considers the effect of indexation on the long-term sustainability of the Scheme.
By adjusting pensions annually, SSNIT ensures that retired members under the Scheme receive their pensions monthly, with their pensions indexed annually to reflect changes in the cost of living.
