SSNIT, or as it is called, The Social Security and National Insurance Trust is a public trust that has legal backing by way of a statute. It is charged with the mandate of overseeing the administrative functions of Ghana’s National Pension Scheme. This gives it its reputation as the largest financial institution that does not have the status of a bank.
It is founded on the principle of goodwill. It is the only statutory financial institution whose predominant aim is to;
- Help assist the elderly in the country by ensuring they do not suffer financial loss. They do this by ensuring they replace part of the income lost by the elderly due to their advanced age.
- Help in ensuring that the family of a deceased person get financial reprieve. They do this by ensuring that the payment of benefits from the contributions of the deceased to the survivors of the contributor.
This idea has been welcomed all over Ghana due to its viability and practicability. It has had a positive response having attracted a multitude of over one million contributors. It has also attracted over one hundred thousand pension scheme beneficiaries who collect payments monthly as their pension.
How it works
This scheme works more or less like an insurance type of fund. It is characterized by monthly payments. To calculate SSNIT contributions is not hard but you have to have some background knowledge.
How to calculate SSNIT contributions
Most contributors to this pension scheme do not have even the slightest idea how their money is deducted let alone what they are entitled to after they retire. Or benefits to be paid to their families in case of their death.
Is there a way to calculate SSNT contributions?
The method used to calculate SSNIT contributions is as follows;
- Look at your age. It is a statutory rule that one is not eligible for a full pension until they have attained 60 years and have contributed to the scheme for 15 years(18 months)
- Average the best 36 months of your employment. This means the finding the average of the best monthly salary you have been earning for three years
- Find out the ‘pension right’ you have earned. This is the rating calculated according to the months you contributed to the scheme.
- Once you have your average best salary for 3 years and your pension right, you can now go ahead and calculate SSNIT contribution as follows
Average best salary for 36 months(X) multiplied by three (3) years divided by the pension right. ((X × 3 YEARS) ÷ pension right.)