The Trades Union Congress (TUC) of Ghana has pledged its unwavering commitment to advocate for improved wages for workers in both the formal and informal sectors. Their primary goal is to align the minimum wage with the rising cost of living, subsequently enhancing pension benefits. The TUC is particularly pushing for the establishment of a living wage to replace the existing minimum wage in the country.
Currently, Ghanaian workers are required to contribute 5.5% of their salary each month, with this amount combined with 13% of their basic salary. The total contribution, 18.5%, is divided, with 13.5% remitted to the Social Security and National Insurance Trust (SSNIT) to fund tier 1 and 2 pension schemes. Presently, the highest-paid private sector pensioner in Ghana receives GHC169,725.89 monthly, while many others receive as little as GHC 400 per month.
Mr. Joshua Ansah, the Deputy General Secretary of TUC-Ghana, attributes the inadequacy of pension benefits to the low salary structure in the country. He assured Ghanaian workers that the TUC leadership is actively engaging with the government to secure a more reasonable minimum wage package for all workers in 2024 and beyond. This initiative aims to enhance the financial security of workers and improve retirement planning for individuals in both formal and informal employment.
Out of Ghana’s 11.5 million labor force, 9.9 million are gainfully employed, with 6.7 million being self-employed. Alarmingly, only 9% of the self-employed workforce is enrolled in a pension scheme, and of that, a mere 0.85% (equivalent to 1.2 million individuals) are part of the SSNIT scheme. To address this disparity, SSNIT has introduced the ‘Self Employment Enrollment Drive’ (SEED) in collaboration with the Trades Union Congress (TUC) to enroll informal sector workers in the pension scheme. This initiative has led to a significant increase in the enrollment of informal sector workers, rising from 14,000 to 57,000 in recent times.
Dr. John Ofori Tenkorang, the Director General of SSNIT, stressed the importance of these contributions in securing the financial future of workers and obtaining various insurance benefits, including partial income replacement, life insurance for dependents, and health insurance. This endeavor is set to provide greater financial security and stability for the workforce in Ghana.
Leave feedback about this