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| (Mr. Joshua Ansah, Deputy General Secretary of TUC) |
The Trades Union Congress (TUC)-Ghana has taken a strong stance in advocating for better wages for Ghanaian workers across both the formal and informal sectors. The aim is to adjust the minimum wage in order to better align with the increasing cost of living and, consequently, enhance pension benefits. TUC is particularly pushing for the introduction of a living wage to replace the current minimum wage in the country.
Presently, 5.5% of a worker's salary is deducted each month, with this amount added to 13% of the worker's basic salary. In total, this sums up to 18.5%, out of which 13.5% is remitted to the Social Security and National Insurance Trust (SSNIT) for payment of the tier 1 and 2 pension schemes. Currently, in Ghana, the highest-paid pensioner, who is a private businessman, receives GHC 169,725.89 monthly, while many other pensioners receive as little as GHC 400 a month. Mr. Joshua Ansah, the Deputy General Secretary of TUC-Ghana, attributes the low pension benefit situation to the insufficient salary structure in the country.
Assuring Ghanaian workers, Mr. Ansah affirmed that TUC is actively engaging with the government to secure a more reasonable minimum wage package for all workers starting in 2024. The objective of this effort is to enhance financial security for workers and improve retirement planning for individuals in both the formal and informal sectors. He emphasized the need for higher salaries to enable workers to pay a larger premium, resulting in better pension benefits in the future. TUC has been advocating for an increase in workers' earnings for quite some time, considering the historically low salaries in the country.
Out of Ghana's 11.5 million labor force, 9.9 million are actively employed, with 6.7 million being self-employed. Surprisingly, only 9% of the self-employed workforce is covered under a pension scheme, and a mere 0.85% (equivalent to 1.2 million individuals) are covered under the SSNIT scheme. To bridge this gap, SSNIT, in collaboration with TUC, has introduced the 'Self Employment Enrollment Drive' (SEED) policy. The objective is to ensure that workers in the informal sector are enrolled in the pension scheme. Dr. John Ofori Tinkorang, the Director-General of SSNIT, expressed the importance of fulfilling contributions to secure the financial future of workers and enable them to access other insurance benefits.
Dr. Tinkorang revealed that the SEED initiative has led to a significant increase in informal sector enrollment in the pension scheme, rising from 14,000 to 57,000 in recent times. He emphasized that contributions not only provide income replacement in case of disability or death but also guarantee lifelong support. He finally mentioned in addition that the contributors receive free health insurance coverage.
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The ongoing efforts by TUC and SSNIT demonstrate their commitment to improving the well-being and financial security of workers in Ghana. It is important to create an enabling environment that ensures fair wages and comprehensive social protection for all workers, ultimately contributing to a more inclusive and prosperous society.
SOURCES:
-GHANA WEB- "TUC pushes for better wages to improve pension benefits"
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