The Social Security and National Insurance Trust (SSNIT), has rolled out an initiative to provide pensions and related benefits to self-employed workers in the informal sector.
The initiative dubbed, Self-Employed Enrolment Drive (SEED), focuses on fulfilling the mandate placed on the Trust (SSNIT) to extend pension coverage to all workers especially, the self-employed.
Launching the SEED in Kumasi, the Director-General of SSNIT, Dr John Ofori-Tenkorang, noted that the Management of the Trust gathered valuable lessons from those stakeholder engagements and the lessons learned have helped to shape the rollout.
He was convinced that if self-employed workers became aware of the value the SSNIT Scheme offers them, they will happily join the Scheme.
According to him, SEED will help redefine social security in this country and give hope to the self–employed and was hopeful that they can also retire in dignity and comfort adding that SSNIT will rely heavily on the strengths of the Tier One product and when convinced the self–employed to look at SSNIT again and will sign them up.
“If we had communicated the unparalleled value and benefits the SSNIT Scheme offers, not only would we see an improvement in self-compliance in the formal sector, but we would have had more than just two percent of our active contributor base being self–employed”.
“They will sign up because what we are offering is an opportunity for them to insure their incomes so they can be replaced when they are old or become invalid and cannot work again. The same Scheme will also pay a benefit to their survivors if they pass on.” Dr. Ofori-Tenkorang stated.
Dr Ofori-Tenkorang, disclosed that currently, about 1.9 million of the estimated 10 million workers in the country are covered under the SSNIT Scheme. He added that out of the 1.9 million active SSNIT contributor base is 32,000 representing about 2% are self-employed persons.
He explained that most self-employed workers would have to rely on the state or family and friends for financial support when they are old and retired.
“This unbalanced coverage of workers is a sad commentary of our social protection system and we have a responsibility to change this narrative. The SSNIT Scheme is not for formal sector employees only, it is for all workers in Ghana. Indeed, our highest earning pensioner who receives GHS 169,752.89 as monthly pension was a businessman.” the Director-General of SSNIT asserted.
Dr Ofori-Tenkorang, urged self-employed workers who have not registered under the Scheme to visit the nearest SSNIT office to contribute regularly to their right earnings using SSNITpay, an electronic payment platform via mobile money and debit cards.
On her part, the Board Chairman of SSNIT, Madam Elizabeth Ohene, noted that though delayed, she was happy that the launch of SEED has come at a time she is chairing the Board of Trustees of SSNIT and expressed mixed feelings pointing out that the nation has not paid attention to the provision of pension for the self-employed.
She stated that the report indicates that of the two million people in the country who are above 60 years, only 11% receive regular pensions saying; a lot of people in active service are burdened with taking care of their aged parents and relatives adding that; the trend is expected to continue if immediate steps are not taken to address it.
“The fact that we are now doing this after more than 50 years of existence of SSNIT is simply not right, but I am very excited and encouraged that we are finally doing so. To think that several millions of workers in the country have no assurance of monthly pensions during their old age is quite scary.” She noted.
In his remarks, the Deputy Minister of Employment and Labour Relations, Bright Wereko-Brobbey, stated that according to a report by the ILO, many social security schemes primarily focus on providing coverage for salaried employees.
He noted the situation leaves a lot of workers, especially those in the informal sector without pension cover.
“The report stated that the gaps in social protection for self-employed workers raise concerns not only for the realization of their human right to social security but also for social and economic development and the achievement of the Sustainable Development Goals, in particular, target 1.3 on social protection systems”. He added.
Mr. Wereko-Brobbey further stated that social security cover for the self-employed is a major concern for Africa considering the nature of economies where the majority of people often work for themselves pointing out that if drastic measures are not taken and implemented to ensure this large group of workers have social security coverage, Ghana will have increasing poverty among the aged and this will not augur well for the country in the future.
He encouraged Ghanaians to subscribe to all the three-tier pension scheme regulated by the National Pensions Regulatory Authority and enjoy tax exemptions of close to 21.5% of their incomes whilst the second and third tiers give a one-time lump sum explaining the first tier, operated by SSNIT will give monthly pensions with guaranteed annual increments.
Mr Wereko-Brobbey therefore entreated Ghanaians especially self-employed persons to contribute to the SSNIT scheme operated in addition to the other tiers urging management of SSNIT to continue improving their service delivery, simplify their onboarding processes and maintain an open door policy that allows members and clients to reach them easily to help build trust and confidence in the Scheme.
He expressed gratitude to the Ministry for the giant steps SSNIT is taking to provide pension cover for the self-employed. Whilst assuring the Trust of the support of his Ministry to the SEED, he urged the Management of SSNIT to encourage Members of SSNIT to periodically update the record of the beneficiaries.
The leadership of the various self-employed groups that were present at the launch of SEED encouraged their members to prioritize SSNIT Pension and sign onto the Scheme to enjoy the benefits and income security.
