Members of the Ghana National Association of Private Schools say they now understand how the contribution to the Social Security and National Insurance Trust (SSNIT) works.
Members of the Association had urged the government to alter the government’s contribution to the Social Security and National Insurance Trust (SSNIT).
The call was made by Rev. Kow Richardson, National Executive Member of Senior High Schools in Effutu and Former Chairman of the Ghana National Association of Private Schools, who spoke on behalf of the Association.
He made his point by saying that taxes on private schools are killing them, and as a result, most private schools have closed, especially when it comes to paying SSNIT to their employees.
He believes that the payment of SSNIT CONTRIBUTIONS, which is mandatory for all employers to make for their employees, is a good thing, but the percentages on the payment are too high. For example, if the employer pays his employee Ghc1,000, the employer provides 13% of that amount and deducts 5%, and pays SSNIT contributions. How much will he be paid at the end of the month?
”The current rate is high. Assume you receive Ghc1000 and must pay SSNIT contributions of approximately Ghc269. What would be left? I propose that the percentage be reduced by ten percent. The law should be amended by Parliament. We could consider a constitutional amendment when the person reaches the age of 50.”
However, after speaking with SSNIT officials, the man of God claims to have a better understanding of how the system works.
He told Rainbowradioonline.com that after stating his position, he was approached by SSNIT officials, who informed him that his position had changed.
He was arguing for a point for a worker whose salary was insufficient and who was required to make contributions of the current percentage, a situation he thought was not in the best interests of the worker.
However, based on the explanation he received, he believes everything was done in the best interests of the worker.
”I have received a call from officials from SSNIT. They explained to me how the system works. I have a better understanding now.”
”They explained to me that the Contribution Rates under the Social Security Scheme ( Tier 1) – Employer – 13.0% from worker basic salary– Worker – 5.5% from workers basic salary – Total – 18.5%. Out of the 18.5%, the employer remits 13.5% within 14 days of the ensuing month to SSNIT. 5% is remitted to the Second-Tier Mandatory Occupational Scheme. Subsequently, SSNIT also gives 2.5% out of the 13.5% to the National Health Insurance Authority (NHIA) for the member’s Health Insurance. SSNIT effectively withholds 11% for the administration of Tier 1.”
By: Rainbowradioonbline.com/Ghana
