Audio By Carbonatix
The Social Security and National Insurance Trust (SSNIT) has observed a worrying phenomenon of employees conniving with their employers to under-declare salaries.
This has resulted in a low contribution towards the scheme with a corresponding meagre benefit received on retirement.
Director-General, Dr. John Ofori-Tenkorang, explains until the trend is reversed, many employees will live in poverty upon retirement.
By law, five-and-half percent of employees’ salary is deducted, in addition to 13 percent of the amount from the employer is paid to SSNIT on a monthly basis as pension.
Sixty percent of the amount contributed is paid to the employee on a monthly basis on retirement after a lump sum.
Dr. Ofori Tenkorang explains any efforts to evade payment puts employees’ future at risk.
“Sometimes, because of miseducation some people will connive with their employers and say that don’t pay me my SSNIT because nothing comes out of SSNIT, and then the employer saves the 13percent and then the five and half percent is also not deducted, and you think that you are getting some additional income to spend today not knowing you are jeopardizing your future. For that day will come when you are unable to work, you are going to miss SSNIT being there to pay for you for as long as you live."
He continues that, "you the employee has the chance to earn up to 60 percent of the highest income that you came to declare and insure with us for life for as long as you live, SSNIT is ready to pay you".
In dealing with challenges mitigating against contributions, SSNIT, in collaboration with the Ministry of Education, has introduced supplementary readers on social security for Senior High Schools.
At the launch in Kumasi, Deputy Minister of Education, John Ntim Fordjour, explained the move will improve financial literacy among the population.
All sixteen regions have already received copies of the supplementary readers through the regional education offices.
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