The Manager of Social Security and National Insurance Trust’s (SSNIT) Self-Employed Enrolment Drive (SEED), Richard Manu, has disclosed that the initiative has chalked significant gains since it was launched.
He said as of August 31, 2024, 114,983 persons have been registered under the initiative, with GHC 61,686,313.55 collected as contributions.
Richard Manu, who announced this at the 2024 Employers’ Breakfast Meeting in the Greater Accra Region, said the benefits of contributors under the scheme are not different from those in the formal sector.
He said up to 60 percent of a member’s three best years’ average annual salaries will also be paid as pension; the scheme assumes longevity risk; pensions will be paid till death; adding that pensions will be increased annually to maintain the purchasing power of pensioners.
He said there is also an in-built life policy, and SSNIT assumes mortality risk and emigration benefits for non-Ghanaian members.
Mr. Manu explained that SEED is the first-tier scheme that has been repackaged to urge the self-employed to contribute their full earnings for a guaranteed pension, among other benefits.
He encouraged employers to support SEED to ensure self-employed workers also have a guaranteed source of income during old age or permanent disability, to reduce over dependence of your staff on family, and to also reduce destitution in Ghanaian society.
The scheme is also maximising digital platforms to provide improved service for contributors and stakeholders.
The scheme has so deployed a self-service web portal to allow employers and their workers to initiate processes to join the scheme, deployed electronic payment platforms to facilitate contributions (direct debit, etc.), deployed USSD for employers to pay the contributions of workers, and a syncronized database with state agencies including the National Identification Authority (NIA), Ghana Revenue Authority (GRA), and Office of the Registrar of Companies.
Launched in May last year, SEED is essentially the Tier One product that has been repackaged, that is, the Basic National Social Security Scheme, to urge the self-employed to contribute regularly on their full earnings for a guaranteed pension, among other benefits.
The initiative focuses on enrolling self-employed persons and workers in the informal sector on the SSNIT Scheme.
On active membership, he revealed that as of May 2024, there were over 2 million contributors or active members, with the largest number in the private sector.
The private sector has an active membership of 1,298,713, representing 62.67%, followed by the public sector with 702,863 active members, representing 34.47%, and SEED with 114,983 members, representing 2.71%.
Employers were advised to ensure that all eligible workers are registered with the scheme and have SSNIT numbers, deduct 5.5% from the worker’s basic salary to the amount, remit 13% of the total amount deducted to SSNIT, and remit the remaining 5% to any tier 2 corporate trustee of choice.
The Deputy Director-General, Operations and Benefits, Ms. Juliana Kpedekpo, in her welcome address underscored the need to continue to communicate the unparalleled value and benefits of the SSNIT Scheme rather than solely rely on the legal compulsion to extend pension coverage.
To the employers, she said, ‘’Your payment of contributions provides a sense of security for your workers. You are the kind of employers the trust doesn’t have to pursue with persuasions and court summons to ensure you pay contributions for your workers. We really appreciate your commitment to fulfilling this obligation. Indeed, our sincere desire is for all employers to act like you do. It is in recognition for your exemplary conduct that we have chosen to host you at the breakfast table today’’.
She said SSNIT will continuously seek to implement initiatives that benefit our members and clients. You should not face bottlenecks when transacting business with the trust. Doing business with us should be very convenient for you. As you know, we recently launched the SSNIT Digital Bouquet, which includes specific digital platforms designed to improve the quality of service we provide to you, our esteemed employers, and members. These platforms aim to, among others, reduce congestion at our branches and ease the process of paying the contributions of your workers by the 14th of each month.’’
She says, ‘’We all have a collective role to play in ensuring that pension coverage is extended to everyone who spends their best years toiling and working daily to build our country.” It is simply the right thing to do. Paying your workers’ contributions shouldn’t be seen as just an obligation but as an opportunity to demonstrate good business practices. This will boost employee morale and consequently enhance productivity in your business’’.
By: Rainbowradioonline.com/Ghana
