The Social Security and National Insurance Trust (SSNIT) has encouraged Ghanaian workers to report their bosses who are not paying their contributions or underpaying.
The failure to pay SSNIT contributions for employees is unlawful, attracts significant penalties, and can lead to prosecution, according to Deputy Public Affairs Manager Ms Jemimah Ofori. She said it is not the desire of SSNIT to drag any employer to court; however, when necessary, the Trust takes that action in enforcing the law.
Ms Ofori indicated that employees must register with SSNIT and begin contributions from their first month of work, whether on probation, on a fixed-term or contract basis, a casual or temporary worker, or a permanent staff member.
By law, from an employee’s basic salary, the employer deducts 5.5% (the Tier 1 contribution) and adds 13% of their own, totalling 18.5% paid directly to SSNIT.
The full amount, together with a monthly contribution report, must reach SSNIT by the 14th day of the following month.
However, some employers do not comply with this directive, which is a criminal offence punishable by law.
It is required for employers to do what is right to avoid being penalised. Employees also have an obligation to follow up with SSNIT to know whether their employers are paying their monthly contributions.
Ms Ofori advised employees to take SSNIT seriously since it is a lifeline for them when they retire.
According to her, failure by employers to pay on time attracts a 3% compound penalty per month or part of a month on the outstanding amount.
This applies to both the employee and employer portions.
Beyond the 3%, the penalty compounds monthly, leaving a six-month late effective penalty of about 19.5% and a twelve-month late effective penalty of about 42.6%.
She also stressed that deliberately failing to deduct or remit contributions, especially money already deducted from an employee’s salary, is a criminal offence.
Deducting the 5.5% but keeping it instead of sending it to SSNIT amounts to misappropriation or theft.
Ms Jemimah Ofori, who was speaking to Kwabena Agyapong on Frontline on Rainbow Radio 87.5FM, said defaulting on SSNIT contributions is a criminal offence under the law.
“There are some businesses that have failed to register their establishments or their workers, failed to submit their contributions report or the employers’ records, and failed to pay contributions and associated penalties. We have taken action against such businesses over the years, but we want to stress that it is not our desire to drag businesses to court, and so they have to do what is right. It is important and lawful for employers to pay contributions for their workers to avoid prosecution and payment of penalties, since SSNIT does not take delight in coming after businesses.”
By: Rainbowradioonline.com/Ghana
