Good News for Pensioners: 12% Increase in Monthly Pensions for 2025
The Social Security and National Insurance Trust (SSNIT) has announced a significant increase in monthly pensions for 2025, with a 12% upward adjustment. This move is aimed at maintaining the purchasing power of pensioners and ensuring they can enjoy a decent standard of living. The increment will be implemented as a fixed rate of 8% plus a flat amount of GH¢72.58, which will be redistributed to cushion low-earning pensioners.
As a result of this indexation, pensioners can expect an effective increase ranging from 32.19% at the lower end to 8.04% at the higher end. The minimum monthly pension will increase from GH¢300 in 2024 to GH¢396.58 in 2025, representing a 32.19% increase. On the other hand, the highest-earning SSNIT pensioner will receive GH¢201,792.37 per month in 2025, representing an 8.04% increase.
Approximately 63% of pensioners, who receive GHS1,814.50 or less monthly, will benefit from this increase, which will help them maintain their standard of living. The average monthly pension will also increase from GH¢1,776.81 in 2024 to GH¢1,990.03 in 2025.
The primary objective of this indexation is to maintain the purchasing power of pensioners, and SSNIT works with the National Pensions Regulatory Authority (NPRA) to determine the right indexation rate every year. The rate of indexation depends on several factors, including the average salary of active contributors, the annual average Consumer Price Index (CPI), affordability, and the impact of indexation on the cost of pensions to the scheme.
SSNIT Management, in consultation with the Board of Trustees and the NPRA, considers these factors before announcing the indexation rate for implementation. This annual review ensures that retired members under the scheme receive their pensions monthly and that their pensions are indexed annually to reflect changes in the economy.
