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How to calculate SSNIT Pension

Social Security National Insurance Trust (SSNIT) is the administrator of the Basic Social Security Scheme in Ghana. Its mandate is to cater for the First-Tier of the Three-Tier Pension Scheme.

The Trust (SSNIT) pays monthly pension for life to qualified persons while payment of lump sum is paid by Tier Two Fund Managers.

The percentage of your basic pay that comes to Social Security National Insurance Trust (SSNIT) is 11%.

SSNIT pays between 37.5% to 60% as your starting pension, subject to yearly increment (indexation).

READ MORE: SSNIT benefits: Important notice to SSNIT contributors

There are three factors that determine your monthly pension. These are;

1. Average of Best Three Years’ Salaries


a. 1st Best Year – GH¢50,000

b. 2nd Best Year – GH¢45,000

c. 3rd Best Year – GH¢30,000

Add all the figures and divide (➗) by 3. The answer (GH¢41,666) becomes your Average Best Three Years’ Salary.


2. Pension Right

Pension Right means the number of months or years contributed.

READ MORE:SSNIT: What you must do before you retire 

The moment you contribute for 15 years, you earn a Pension Right of 37.5% from a maximum of 60%.

Then every additional year gives you a Pension Right of 1.125%.

Example: For someone who contributed for 20 years, the first 15 years will be 37.5%. The remaining 5 years will be 1.125 X 5 = 5.625.

So, 20 years Pension Right: 37.5 % + 5.625% = 43.125%.


3. Age Reduction Factor

READ ALSO: SSNIT Bio-information, its usefulness, requirements and how to apply

When you retire at age 60, you earn Full Pension, that is 100% or 1.

However, when you retire before age 60, depending on the age at retirement, that is 55 to 59 years, you earn a Reduced Pension.
Instead of 100% benefit, your benefit will have this range (60% to 90%).

So, the formula will be:



37.5% (if contribution period is 15 years)


1 (if the person retires at age 60).

The answer you get (GH¢15,624.75) is the annual pension.

Kindly divide the answer by 12 to get the monthly pension (GH¢1,302.0625).


1. The person contributed for 15 years. If he had contributed for 20 years, his monthly pension will be GH¢1,497.37

2. This amount is subject to yearly increment.

3. The amount you earn as monthly pension is a reflection of your basic pay during active service.

4. This person contributed for 15 / 20 years. But SSNIT pays monthly pension for LIFE.

5. There are people over 90 years and still receiving monthly pension from SSNIT.

READ MORE:This is how Social Security and National Insurance Trust (SSNIT) operates 

6. The SSNIT Scheme has a guaranteed period of 15 years (that is 60 to 75 years). After 75 years, you’ve exhausted all your money.

7. So, to ensure continuous payment of your monthly pension after 75 years, you ought to renew your Pensioner Certificate every year.

8. Allowances are not included in the computation of pension. Employees are encouraged to discuss with their employers to consolidate their earnings and pay contribution on the total amount.



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