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The government of Ghana created the Social Security Scheme as a comprehensive social security program to offer social safety and financial assistance to working...
Understanding Ghana's Social Security System reveals a solid framework intended to offer Ghanaian residents financial security and support throughout their lives.
The Ghanaian Social Security Scheme is a crucial safety net that provides benefits like retirement, invalidity, survivors' support, and maternity and assures the well-being of its residents.
The information below provides an in-depth analysis of Ghana's Social Security Scheme's requirements for contributions and significant advantages for members.
This article is helpful for those seeking financial security and peace of mind for themselves and their family. Similarly, Ghanaian employers can find helpful information on contributions and compliance.
The government of Ghana created the Social Security Scheme as a comprehensive social security program to offer social safety and financial assistance to working individuals and their dependents.
The program ensures Ghanaians' welfare and subsistence by providing various benefits, including retirement, incapacity, and survivors' support benefits.
The Social Security and National Insurance Trust (or SSNIT) manages the program, registers employers and workers, manages all member records, collects employer and employee contributions and handles benefit payments. It is the most significant non-bank financial institution in the country.
The Social Security Scheme promotes social welfare and aids people and families in maintaining financial stability through significant life stages and unforeseen circumstances.
SSNIT was founded in 1972 to administer the Security Scheme. The scheme was an act of parliament implemented in January 2010, replacing all pension schemes in the country.
Individuals must meet specific criteria to participate and benefit from the scheme. The essential eligibility requirements include the following:
Ghana's Social Security Scheme follows a three-tier contribution structure. The first two tiers are mandatory contributions, while the third is voluntary.
The total mandatory contribution is 18.5%. Employers must remit 13.5% to SSNIT within 14 days after the end of a month. 2.5% of the 13.5% goes to the NHIA for the member's health insurance. Employers make payments through the SSNIT portal, approved mobile money platforms, authorized banks, and direct debit.
Depending on the contingency, members can enjoy four benefits under the Social Security Scheme.
It is a financial benefit provided to contributors in their old age as part of the social security system. The SSNIT administers the benefit, serving as a form of retirement income for qualified individuals who contributed to the scheme during their working years.
For a full pension, the individual must be at least 60 years and make a minimum of 180 months aggregate contributions. Those eligible for a reduced pension must be between 55 and 60 years and make a minimum of 180 months aggregate contributions.
It is a financial benefit given to individuals who cannot work due to long-term illness or disability. The pension produces financial support to people who have unexpectedly become severely or permanently disabled and thus unable to engage in employment.
SSNIT conducts a medical assessment and evaluation to determine eligibility for this pension. In addition, the individual must be declared permanently incapable of gainful employment by a qualified and recognized medical officer. Eligible people must have contributed for 12 months in aggregate within 36 months before the incidence of invalidity.
It is a benefit given to a deceased provider's surviving dependents or family members. The SSNIT administers the benefit as a one-time payment to provide financial support. The amount helps the dependents cope with losing a primary income earner.
The lump sum payment amount depends on the deceased contributor's dependents, age, and length of service. The SSNIT only pays when the contributor dies before retirement or a pensioner dies before age 75. In addition, compensation depends on how contributions were made before the contributor's death.
It allows contributors who permanently emigrate from Ghana to receive accumulated social security contributions. It is designed for individuals who no longer plan to work or reside in Ghana. Upon approval from the SSNIT, individuals receive the benefit as a lump sum. The amount depends on the contributor's total contributions and average monthly salary.
Employers must register with the SSNIT and have a social security number. SSNIT requires employers to provide a Certificate of Incorporation, Certificate to Commence Business, a list of employees with details such as social security numbers, valid ID, email addresses, basic salaries and tier 1 contributions, and primary place of business with a postal address. Employers can register on the SSNIT website and receive an employer registration number or ERN.
Ghana's Social Security Scheme guarantees Ghanaians' long-term financial stability and well-being. Employees can enjoy the various benefits and ensure their financial future by understanding the social security scheme. Similarly, employers can remain compliant with legal requirements.
Ghanaian business owners may partner with Workpay to remunerate salaries and benefits while making the correct deductions for the social security scheme. We ensure compliance on top of timely and convenient payments for workers in Ghana. Reach out today to get started.
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