Social Security

Pension Rights

The National Pension Act provides for both full and partial pension. To qualify for a full pension, a worker must have attained 60 years of age (55 years if working under hazardous conditions) with at least 180 months (15 years) of contributions. An early pension is also available to workers from the age of 55 years with at least 180 months (15 years) of contributions.

Since the 2014 reform, pensions are calculated based on a worker’s average annual earnings over their best three years. The basic pension amount is 37.5% of average earnings, plus 0.09375% for each month of contributions beyond 180 months

If a worker contributes for more than the minimum required years, their pension increases by 1.125% per additional year, up to a maximum of 60%. Workers who were 55 or older when the new pension scheme began are exempt from joining it.

Longer contributions lead to an increase in the pension. Early pension ranges from 60% (age 55) to 90% (age 59) of the full pension.

If a worker retires at age 60 but hasn’t reached 180 months of contributions, they are eligible for an old-age grant, paid as a lump sum equal to the present value of all contributions made, plus interest. The interest is set at 75% of the prevailing 91-day Treasury bill rate

Sources: § 60, 70, 75-77 of the National Pensions Act 2008(Act 766), last amended by Act 883 2014; ISSA Country Profile for Ghana

Dependents' / Survivors' Benefit

National Pensions Act, 2008 provides for survivor benefits. Eligible survivors are named by the deceased; if beneficiaries are not named, eligible survivors are persons specified in the rules of the scheme.

The lump-sum survivors' benefit is paid if a worker dies after attaining retirement age between 60 - 75 years. If the worker was not a pensioner, a lump sum equal to the present value of 15 years of pension is paid. The present value of the pension is calculated using the prevailing monthly Treasury bill interest rate or 10%, whichever is lower.

If the worker dies before retirement, a mandatory occupational pension is paid as a lump sum of all contributions made, plus interest.

Survivor grants are not payable abroad. These benefits are reviewed annually and may be adjusted based on the average increase in the wages of contributors to the scheme.

Sources: § 73 & 78 of the National Pensions Act 2008 (Act 766), last amended by Act 883 2014; ISSA Country Profile for Ghana

Invalidity Benefit

National Pensions Act, 2008 provides for invalidity benefit in the case of non-occupational accident/injury/disease resulting into permanent invalidity.

To qualify for this support, the worker must:

• Have made at least 12 months of contributions in the last 36 months, and
• Be officially certified by a medical board as unable to work or earn a living

If eligible, the worker will receive whichever amount is higher: - The minimum pension, which is 37.5% of the average earnings from their best 3 years, plus an extra 0.09375% for every month of contributions beyond 180 months, or - The pension based on their actual contributions

If a worker doesn't qualify for the disability pension under the social insurance scheme, they can still receive a disability grant. This grant is paid as a one-time lump sum, which equals the total amount the worker has contributed, plus interest. The interest is calculated at 75% of the current 91-day government Treasury bill rate.

A lump sum of the present value of total contributions plus interest is paid as a mandatory occupational pension. The insured person must be assessed with a total or permanent disability.

Sources: § 71 & 79 of the National Pensions Act 2008 (Act 766); ISSA Country Profile for Ghana