SSNIT has disclosed that less than 50% of employers pay workers’ contribution on mandatory date

SSNIT has disclosed that less than 50% of employers pay workers’ contribution on mandatory date

The Director-General of Social Security and National Insurance Trust (SSNIT) Dr John Ofori-Tenkorang has revealed that data available indicate that less than 50 percent of employers pay their employees pension contributions by the 14th of the month, as required by law.
   
   
   
       
       
           
               
                   

The Director-General of Social Security and National Insurance Trust (SSNIT) Dr John Ofori-Tenkorang has revealed that data available indicate that less than 50 percent of employers pay their employees pension contributions by the 14th of the month, as required by law.

               
           
               
                   

According to Dr Ofori-Tenkorang, what this implies is that most employers in Ghana do not comply with the payment of their workers’ pension contributions.

               
           
               
                   

The Director General of the Trust, Dr Ofori-Tenkorang made this known at Organised Labour’s Pre-May Day Forum held in Accra.

               
           
               
                   

He said that his office has been receiving petitions to waive the three percent monthly penalty payment levied on employers who fail to comply with the mandatory date and measures are underway to address it.

               
           
               
                   

“Penalty is a misnomer because what we are looking for is to be able to get value for the money. When you pay money at a later date, it has to accrue interest. Aside from the interest component, there has to be a deterrent factor that will make sure employers pay the contribution on time to sustain the scheme.”

               
           
               
                   

SSNIT has, therefore, put measures in place to streamline prompt payment of contributions. SSNIT has made the process more flexible for employers.

               
           
               
                   

Henceforth, employers can now submit the list of their employees and their corresponding salary earnings online and make payment at designated banks. Before this, such transactions could only be done at specific SSNIT branches.

               
           
               
                   

This initiative is leveraging on technology and digitization to improve on administrative systems by automating some processes to bring ease to employers that would, in turn, contribute to convenience in doing business in the country.

               
           
               
                   

The Director also stated that in situations where companies face issues with cashflows, a negotiated payment plan has been instituted by SSNIT to enable the employer to carry on with their business.

Source: SSNIT has disclosed that less than 50% of employers pay workers’ contribution on mandatory date

- gist culled from pulseng