The Trades Union Congress (TUC) in Ghana is taking a strong stance on improving wages for workers in both the formal and informal sectors for pension benefits. The goal is to adjust the minimum wages to better align with the rising cost of living, which, in turn, would enhance pension benefits for the workforce. The TUC is advocating for a living wage to replace the existing minimum wage in the country.
At present, 5.5% of a worker’s salary is deducted each month, with this amount added to 13% of the worker’s basic salary. In total, this constitutes 18.5%, out of which 13.5% is remitted to the Social Security and National Insurance Trust (SSNIT) for payment of tier 1 and 2 pension schemes.
The TUC has voiced concerns over the existing pension system, where the highest-paid pensioner, a private businessman, receives GHC 169,725.89 monthly, while many others receive as little as GHC 400 a month. Mr. Joshua Ansah, the Deputy General Secretary of TUC-Ghana, attributes these disparities to the poor salary structure in the country and is actively engaging with the government to secure a more reasonable minimum wage package for all workers in 2024 and beyond.
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Improving salaries is seen as a way to bolster financial security for workers and enhance retirement planning for individuals in both the formal and informal sectors. The TUC has been advocating for a living wage instead of a minimum wage to help raise basic salaries, ultimately leading to better pensions.
Addressing the significant coverage gap in the informal sector, SSNIT has introduced the ‘Self Employment Enrollment Drive’ (SEED) in collaboration with the TUC. This initiative aims to enroll informal sector workers into the pension scheme. Dr. John Ofori Tinkorang, Director General of SSNIT, emphasized the importance of such contributions in safeguarding workers’ financial futures and providing other insurance benefits, including life insurance and income replacement in case of disability.
Additionally, contributors are eligible for free health insurance. These efforts reflect a commitment to improving the overall financial well-being and social protection of Ghanaian workers.
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