The Social Security and National Insurance Trust (SSNIT) has announced a 12% increment in monthly pensions for the year 2025. This adjustment, conducted in consultation with the National Pensions Regulatory Authority (NPRA), aligns with Section 80 of the National Pensions Act, 2008 (Act 766).
The increment comprises a fixed rate of 8% and an additional flat amount of GH¢72.58, aimed at redistributing 4% to support lower-earning pensioners under the solidarity principle of social security. As a result, pensioners will experience effective increases ranging from 8.04% for high earners to 32.19% for low earners. For instance, the minimum monthly pension of GH¢300 in 2024 will rise to GH¢396.58 in 2025, marking a 32.19% boost.
The highest-earning pensioner under the PNDC Law 247 framework will receive GH¢201,792.37 per month in 2025, reflecting an 8.04% increase. Meanwhile, the average monthly pension will increase from GH¢1,776.81 in 2024 to GH¢1,990.03 in 2025.
“Redistribution is a mechanism applied to the indexation rate to cushion low-earning pensioners in conformity with the solidarity principle of social security. As a result, pensioners will have an effective increment between 32.19% at the bottom end and 8.04% at the top end. Redistribution ensures that the minimum monthly pension of GH¢300 in 2024 will increase to GH¢396.58 in 2025, an effective increase of 32.19%,” SSNIT said.
This adjustment will benefit approximately 63% of pensioners, particularly those earning GH¢1,814.50 or less per month, helping to maintain their standard of living. The 12% increase takes effect from January 2025, with pension payments scheduled for the third Thursday of every month.
This increment is a welcome change for many pensioners, particularly those at the lower end of the scale who face the challenges of rising living costs. With the adjustment, SSNIT hopes to address some of the economic difficulties pensioners face, ensuring they can sustain their livelihoods. The increase not only reflects the solidarity principle but also underlines the importance of a fair and equitable social security system in Ghana.
The upcoming SSNIT pension increment for 2025 is poised to make a significant impact on the financial well-being of retirees, as the nation prepares for these changes.
