The Social Security and National Insurance Trust (SSNIT) has approved a 10 per cent overall pension indexation for 2026, with a strong focus on improving the incomes of low-earning pensioners and strengthening the minimum pension floor.
Under the new adjustment, the minimum monthly pension for new retirees has been increased from GH¢300 to GH¢400, while pensioners currently receiving the minimum pension will now earn GH¢409.56 per month, representing a significant increase of 36.52 per cent.
The decision was taken in consultation with the National Pensions Regulatory Authority (NPRA) in line with Section 80 of the National Pensions Act, 2008 (Act 766).
Solidarity principle
SSNIT explained that the indexation applied the redistribution and solidarity principle, a key feature of social security systems, to cushion pensioners at the lower end of the pension scale.
Under this mechanism, disparities in pension benefits are moderated to ensure that low-income pensioners receive meaningful increases, while the Scheme remains financially sustainable.
The Trust noted that, as a defined benefit scheme, SSNIT pensions are based on salaries earned during active service and contributions paid over time.
Details of the indexation
For 2026, all pensioners on the SSNIT payroll will receive a pension increase made up of a fixed rate of six per cent, plus a flat redistributed amount of GH¢71.56.
This flat amount represents the remaining four per cent of the overall indexation rate applied in a way that favours lower-earning pensioners.
While the overall indexation rate stands at 10 per cent, the effective increase will vary across pension levels.
Higher-earning pensioners will receive increases closer to the headline rate, while lower-earning pensioners will benefit from higher effective increases due to the flat redistribution and the strengthened minimum pension.
Currently, the highest-earning pensioner receives GH¢213,991.47 per month.
Economic considerations
SSNIT said the 2026 indexation rate was determined after considering key economic indicators, including salary growth among active contributors, projected average inflation of 8 ± 2 per cent by the end of 2025, and the long-term sustainability of the pension fund.
The Trust stressed that the adjustment was aimed at helping pensioners maintain the real value of their benefits in the face of changing economic conditions, while safeguarding the Scheme for future generations.
Pensions continue to be paid on the third Thursday of every month.
Source: Nii Okpoti Odamtten/Muhammed Faisal Mustapha
