globaltaxnews.ey.comSign up for tax alert emailsPrintDownload

27 February 2025

Ghana's Social Security and National Insurance Trust notifies all employers of change in 2025 maximum insurable earnings

  • The Social Security and National Insurance Trust (SSNIT) has announced an increase in maximum insurable earnings and a maximum Tier 1 pension contribution, effective from January 2025.
  • Employers must now comply with the new threshold for pension contributions.
 

On 28 January 2025, the Social Security and National Insurance Trust (SSNIT) issued a notice informing all employers that it had increased the maximum insurable earnings to 61,000 Ghanaian cedi (GHS61k) with effect from January 2025.

The following revised threshold will apply for the calendar year 2025:

  • Maximum insurable earnings: GHS61k
  • Maximum SSNIT contribution: GHS8,235

The new threshold will affect SSNIT contributions from January 2025.

Implications for employers

Employers are required to comply with the new threshold in computing mandatory Tier 1 pension contributions payable to SSNIT by both the employee and the employer with effect from January 2025. ("Tier 1" refers to a defined benefit system in which SSNIT handles tax-free contributions that are based on an employee's base wage; employees receive payments under the plan after they retire.)

Effect on employees

Employees with maximum insurable earnings exceeding the previous GHS52k limit will now contribute more toward the Tier 1 scheme. The increased contribution up to the maximum insurable earnings of GHS61k will, however, qualify as additional relief from pay-as-you-earn (PAYE) taxes.

* * * * * * * * * *
Contact Information

For additional information concerning this Alert, please contact:

Ernst & Young Chartered Accountants, Accra

Ernst & Young Société d'Avocats, Pan African Tax — Transfer Pricing Desk, Paris

Ernst & Young LLP (United Kingdom), Pan African Tax Desk, London

Ernst & Young LLP (United States), Pan African Tax Desk, New York

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

Document ID: 2025-0571

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2025, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more