Employees and Social Security

Employees and social security

Employers and employees in Ghana have mandatory commitments to make social security contributions towards the pensions of employees through the Social Security and National Insurance Trust (SSNIT). Under the National Pensions Act 2008 (Act 766), employers and employees are required to make mandatory payments of 13% and 5.5% respectively of the employee’s salary. Such contributions are expected to be managed under three-tier pension scheme as follows:

  • The first tier consists of a mandatory basic social security scheme. These contributions are remitted to SSNIT for management.
  • The second tier is a mandatory fully funded and privately managed provident fund and personal pension scheme.
  • The third tier is a voluntary funded and privately managed provident fund and personal pension scheme. Both the second and third tier contributions are remitted to and managed by an approved trustee.