The Social Security and National Insurance Trust (SSNIT) has announced a 12% indexation of monthly pensions for 2025, effective January 1.
The adjustment, approved in consultation with the National Pensions Regulatory Authority (NPRA) and in accordance with Section 80 of the National Pensions Act, 2008 (Act 766), aims to safeguard the purchasing power of pensioners while addressing disparities in benefits.
The increase comprises a fixed rate of 8% plus a flat amount of GH¢72.58, distributed to cushion low-earning pensioners under SSNIT’s redistribution mechanism. As a result, pensioners will experience increments ranging from 32.19% for the lowest earners to 8.04% for the highest earners.
For instance, pensioners receiving GH¢300 monthly in 2024 will now receive GH¢396.58, marking a 32.19% increase.
Those earning GH¢500 monthly will see their pension rise to GH¢613, a 22.52% increase.
SSNIT explained that redistribution aligns with the solidarity principle of social security, ensuring greater equity among pensioners.
The average monthly pension will increase from GH¢1,776.81 in 2024 to GH¢1,990.03 in 2025. About 63% of pensioners—those earning GH¢1,814.50 or less—will receive increments exceeding the average 12%, reflecting SSNIT’s commitment to maintaining the standard of living for retirees.
“The primary objective of the indexation is to maintain the purchasing power of pensioners. By redistributing a portion of the increase, we ensure that low-earning pensioners receive adequate support, in line with the solidarity principle,” SSNIT noted.
SSNIT emphasized that the rate is determined based on: The average salary of active contributors in the previous year; Annual Consumer Price Index (CPI) and the scheme’s affordability and sustainability.
“Indexation is an annual requirement by law. We work with the NPRA to determine a rate that balances affordability with the long-term sustainability of the pension scheme,” SSNIT added.
The highest-earning SSNIT pensioner, receiving benefits under the PNDC Law 247, will see their monthly pension rise from GH¢186,775.95 in 2024 to GH¢201,792.37 in 2025, representing an 8.04% increase.
The management reiterated the importance of annual pension reviews indicating that the Trust is mandated to review pension payments annually, indexing them to wage inflation or another appropriate rate. This ensures pensioners’ economic well-being and the scheme’s sustainability.
SSNIT encouraged contributors and pensioners to stay informed about their entitlements and reaffirmed its commitment to supporting retirees.
“We remain dedicated to providing retirees with dignified pensions while ensuring the long-term health of the scheme,” the management stated.