The Social Security and National Insurance Trust (SSNIT), in consultation with the National Pensions Regulatory Authority (NPRA), has released the new insurable earnings for the year 2023 calling on the public to ensure compliance.
According to SSNIT the maximum insurable earning for 2023 is increased from GHS 35,000.00 to GHS 42,000.00 as they say the upward review is in fulfilment of section 63(3) of the National Pensions Act 2008 (Act 766).
By this the new minimum insurable earning has therefore been increased from Ghc 365.33 to Ghc 401.76 in tandem with the new minimum wage sanctioned by the Fair Wages and Salaries Commission stipulated in the 2023 Budget Statement and Government’s fiscal policy which has been approved by parliament.
In a statement issued by management of SSNIT, whereas the maximum contributions payable to SSNIT will be Ghc 5, 670.00, the minimum for same wshould not be less than Ghc 54.24 effective 1st January, 2023.
They further calling on the employers and the general public especially those with the scheme who may be affected by the adjustment in their insurable earnings to ensure the right contributions are paid.
Insight:
Insurable earnings include amounts reported on an earnings statement, or wage slip before any deductions are made for income tax, Employment Insurance (EI), Pension Plan (PP), health care plans, loan payments, union dues, mortgages etc.
However, benefits other than in cash are not insurable with the exception of the value of board and lodging enjoyed by a worker in a pay period if cash remuneration is also paid. Benefits in kind and non-monetary benefits are considered to be non-cash benefits.
Also overtime hours accumulated and paid at a later date, or paid on termination of employment, are equally insurable when the parties can establish the effective hours worked.
