The Social Security and National Insurance Trust (SSNIT) has announced a 12 percent increase in pensions for the year 2025, bringing much-needed relief to pensioners nationwide. 

The increment, which takes effect immediately, was announced in a press release issued on Monday, January 6, 2025, following consultations with the National Pensions Regulatory Authority (NPRA). 

How the increase will be applied
  
According to SSNIT, the increase comprises a fixed rate of 8 percent and a flat amount of GH¢72.58, redistributed to benefit low-earning pensioners. This approach ensures an effective increment ranging from **32.19%** for low-income pensioners to 8.04 percent for the highest earners.  

The redistribution mechanism aligns with the solidarity principle of social security, cushioning those at the lower end of the pension scale. 

Pension earnings breakdown
  
1. Minimum Pension:  
   - Increased from GH¢300.00 in 2024 to GH¢396.58 in 2025.  
   - Represents an effective increase of 32.19 percent.  

2. Highest-earning pensioners:  
   - Under PNDC Law 247: GH¢201,792.37 per month.  
   - Under Act 766: GH¢28,703.01 per month. 

3. Average Monthly Pension:  
   - Will increase from GH¢1,776.81 in 2024 to GH¢1,990.03 in 2025.  

SSNIT’s commitment to pensioners 

SSNIT explained that the annual indexation process is designed to maintain the purchasing power of pensioners, ensuring their earnings align with economic realities.

“The Trust shall annually review the pension payment, which shall be indexed to wage inflation rates of active contributors or another rate determined by the Trust in consultation with the Board of the Authority,” the statement noted.  

Why Indexation Matters

Indexation considers various factors, including:
  
- Average salary of active contributors.  
- Annual Consumer Price Index (CPI).  
- Affordability and the long-term sustainability of the Scheme. 

Impact of the 2025 Indexation
  
Approximately 63 percent of pensioners, receiving GH¢1,814.50 or less, will benefit from an effective increase between 12 percent and 32.19 percent, significantly helping them maintain their standard of living.  

Implementation

The 12 percent pension increase takes effect this month, with payments scheduled for the third Thursday of every month.  

This announcement brings hope and financial relief to Ghanaian pensioners as they adjust to the rising cost of living while benefitting from SSNIT’s commitment to securing retirement income.