The Social Security and National Insurance Trust (SSNIT) has announced a 10 per cent increase in monthly pensions for 2026, a move aimed at cushioning pensioners, particularly those on lower incomes, against rising living costs and inflationary pressures.
The adjustment applies to all pensioners on the SSNIT Pension Payroll as of December 31, 2025, and takes effect from January 2026. Under the new indexation structure, every pensioner will receive a fixed six per cent increase, alongside a redistributed amount of GH¢91.56 drawn from the remaining four per cent of the indexation rate.
Announcing the decision at a press conference in Accra last Thursday, SSNIT explained that the redistribution mechanism was guided by the solidarity principle of social security, designed to reduce income disparities and ensure more meaningful pension increases for those at the lower end of the scale.
“As a defined benefit scheme, pensions are directly linked to salaries on which contributions were paid,” SSNIT noted. “Indexation is therefore necessary to help preserve the real value of pensions while ensuring the long-term sustainability of the Fund.”
Low-Income Pensioners Gain the Most
According to SSNIT, about 70 per cent of pensioners on its payroll will benefit from the full 10 per cent increase or more due to the redistribution approach.
Pensioners who were on the minimum pension of GH¢300 in 2025 will now receive GH¢409 per month, an effective increase of 36.52 per cent. Those earning GH¢500 monthly will see their pensions rise to GH¢621.56, representing a 24.31 per cent increase.
Pensioners receiving GH¢2,018 per month will now earn GH¢2,220, reflecting the standard 10 per cent increase, while those on GH¢5,000 will receive GH¢5,391.56, an effective increase of 17.83 per cent.
At the top end of the scale, the highest pensioner, who previously earned GH¢201,792.37 per month, will now receive GH¢213,991.47, an effective increase of 6.05 per cent.
Legal Backing and Sustainability Considerations
The Chief Actuary of SSNIT, Evelyn Adjei, explained that the structure of the increase was deliberately designed to favour lower-income pensioners.
“If you look at it closely, those who are receiving more are receiving less effectively than those who are receiving the minimum or lower-bracket pensions. That is to help those at the bottom get more,” she said.
Mrs Adjei added that the 10 per cent indexation would cost the Trust an additional GH¢616 million, underscoring the significant financial implications of the adjustment.
She noted that Section 80 of the National Pensions Act, 2008 (Act 766), mandates SSNIT to review pensions annually in line with wage inflation or any other rate determined by the Board of Trustees in consultation with the National Pensions Regulatory Authority (NPRA).
“That’s why we do indexation every year. We do it in line with the law,” she stated.
Protecting Pensions Against Inflation
The Director-General of SSNIT, Kwesi Afreh Biney, said safeguarding the value of pensions remains a core responsibility of the Trust. With inflation standing at 5.4 per cent as of December 2025, he said the adjustment ensures that pensioners’ incomes are protected against rising prices.
“What that means is that every pensioner on our payroll has at least been covered for inflation. Even the highest pensioner is getting about six per cent,” he explained.
Mr Biney further noted that lower-income pensioners recorded even higher real gains.
“For those on a lower rate, increases have gone as high as 36.52 per cent. This shows our commitment to equity and fairness. With inflation at 5.4 per cent, more than 70 per cent of our members are enjoying real growth in excess of five per cent,” he said.
The 2026 pension indexation, SSNIT emphasized, was determined after factoring in salary growth among active contributors, projected average inflation of 8 ± 2 per cent by the end of 2025, and the long-term sustainability of the Fund.
