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The Social Security and National Insurance Trust (SSNIT) has implemented a significant boost of 15% in monthly pension payments to align with the 2024 indexation rate.
This adjustment is in accordance with Section 80 of the National Benefits Act, 2008 (Act 766), which mandates a 10% increase in monthly benefits for qualified SSNIT pensioners, along with an additional redistributed flat sum of ¢79.10, effective as of December 31, 2023.
As a result of this revision, pensioners receiving the minimum wage will now enjoy a monthly payment of GHC409.10, reflecting a notable 36.37% surge above the 2023 minimum pension amount. Conversely, the highest-earning pensioner currently receives GH¢186,777.58 per month.
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Joseph Poku, Chief Actuary of SSNIT, emphasized that this adjustment was made in collaboration with the National Pensions Regulatory Authority (NPRA) to shield pensioners from the escalating costs of living, all while ensuring the sustainability of the pension plan.
During the unveiling of the 2024 Pension Indexation Report, Poku explained that the 15% increase was a response to SSNIT’s anticipation of a 20% salary inflation for active contributors and a 23.16% inflation rate in 2024. The average monthly pension is expected to rise from ¢1,527.29 in 2023 to ¢1,756.38 in 2024.
With this 15% indexation rate, there will be a resultant increase in pension expenses, totaling ¢697.64 million. The projected total expenditure for pensioners on the Pension Payroll as of December 31, 2023, for the entire year 2024, is estimated to be ¢5,387.72 million. This adjustment reflects SSNIT’s commitment to addressing the financial well-being of pensioners amid economic fluctuations.
