Pensioners on the Social Security and National Insurance Trust (SSNIT) payroll will see their SSNIT pension monthly benefits increase in 2025.
SSNIT after consultation with the National Pensions Regulatory Authority (NPRA) has increased monthly benefits paid to pensioners by an average of 12%. However, the announcement specified that this increment would only benefit pensioners who were on the payroll of SSNIT as of December 31st, 2024.
SSNIT said the 12% increment takes effect this month, January 2025 and the decision was made per Section 80 of the National Pensions Act, 2008 (Act 766).
Despite the average 12% increment, SSNIT made use of equity to ensure that people who earn less get a bigger percentage increase compared to those who earn more. It’s based on the idea of fairness and helping those who need it the most which SSNIT describes as redistribution.
Per the redistribution formula of SSNIT, the lowest earners will enjoy a 32.19% increase in their monthly benefits. For instance, a pensioner currently earning GH¢300 per month (the minimum amount) will now receive GH¢396.58 per month in 2025 marking a 32.19% increase.
However, if you’re earning a larger pension, your increase will be smaller. At the higher end, the increase will only be 8.04%. While everyone’s pension is going up, those with lower pensions will see a bigger boost in percentage terms.
“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 indicated.
Per the latest increment, SSNIT noted that the highest earner will now receive GH¢201,792.37 per month in 2025, representing a percentage increase of 8.04%.
In addition, the average monthly pension benefit, which stood at GH¢1,776.81 in 2024, will increase to GH¢1,990.03 in 2025.
The increment, SSNIT observed is aimed at cushioning pensioners to help maintain or improve their standard of living. This comes at a time when the economy is in a serious mess when inflation is already soaring increasing the cost of living.
