Ghana

Old Age, Disability, and Survivors

Regulatory Framework

First laws: 1965, 1972, and 1991.

Current law: 2008 (national pensions), implemented in 2010.

Type of program: Social insurance and mandatory occupational pension system.

Coverage

Employed persons.

Voluntary coverage for self-employed persons and previously insured unemployed persons.

Special systems for military personnel and high-ranking government officials.

Source of Funds

Insured person: 5.5% of earnings; 18.5% of declared income for the voluntarily insured.

Of the combined insured person and employer contributions, 11% of earnings finances the social insurance benefits under Old Age, Disability and Survivors; 5% finances mandatory occupational pensions; and 2.5% finances medical benefits.

Self-employed person: 11% of declared income (social insurance), 5% (mandatory occupational pension), and 2.5% (medical benefits).

Employer: 13% of payroll.

Of the combined insured person and employer contributions, 11% of earnings finances the social insurance benefits under Old Age, Disability and Survivors; 5% finances mandatory occupational pensions; and 2.5% finances medical benefits.

Government: None.

Qualifying Conditions

Old-age pension (social insurance): Age 60 (age 55 if working under hazardous conditions) with at least 180 months of contributions.

Early pension: Age 55 with at least 180 months of contributions.

The old-age pension is not payable abroad.

Old-age grant (social insurance): Age 60 with less than 180 months of contributions.

Old-age grant (mandatory occupational pension): Age 60.

Early pension: Age 55 and unemployed or self-employed; any age if permanently emigrating or retired before age 55 according to the terms and conditions of employment.

Disability pension (social insurance): Must be assessed with a permanent disability and an incapacity for any gainful employment, and have at least 12 months of contributions in the last 36 months.

The disability must be assessed by a qualified and recognized medical officer and certified by a regional medical board that includes a Social Security and National Insurance Trust medical officer.

The disability pension is not payable abroad.

Disability grant (social insurance): Must be assessed with a permanent disability and an incapacity for any gainful employment, and have less than 180 months of contributions.

Disability grant (mandatory occupational pension): Must be assessed with a total or permanent disability.

Survivor grant (social insurance): Paid if the insured was younger than age 75 at the time of death.

Eligible survivors are dependents named by the deceased.

The survivor grant is not payable abroad.

Survivor grant (mandatory occupational pension): Paid if the insured dies before reaching the normal retirement age.

Eligible survivors are named by the deceased; if there are no named beneficiaries, eligible survivors include persons specified in the rules of the scheme.

Old-Age Benefits

Old-age pension (social insurance): 37.5% of the insured's average annual earnings in the three best years of earnings plus 0.09375% of average annual earnings for each month of contributions exceeding 180 months is paid.

The minimum monthly pension is 276 cedi.

The maximum annual pension is 60% of the insured's average annual earnings in the best three years of earnings.

Early pension: From 60% (age 55) to 90% (age 59) of the old-age pension is paid.

Benefit adjustment: Benefits are reviewed annually and may be adjusted according to the average increase in the wages of the contributors to the scheme.

Old-age grant (social insurance): A lump sum of total employee contributions plus accrued interest is paid.

The interest rate is set at 75% of the prevailing government Treasury bill rate.

The current 91-day Treasury bill rate is 11.9324% (as of June 30, 2017).

Old-age grant (mandatory occupational pension): A lump sum of total employer and employee contributions plus accrued interest is paid.

Early pension: A lump sum of total employer and employee contributions plus accrued interest is paid.

Permanent Disability Benefits

Disability pension (social insurance): 37.5% of the insured's average annual earnings in the three best years of earnings plus 0.09375% of average annual earnings for each month of contributions exceeding 180 months is paid.

Benefit adjustment: Benefits are reviewed annually and may be adjusted according to the average increase in the wages of contributors to the scheme.

Disability grant (social insurance): A lump sum of total employee contributions plus accrued interest is paid.

The interest rate is set at 75% of the prevailing government Treasury bill rate.

The current 91-days Treasury bill rate is 11.9324% (as of June 30, 2017).

Disability grant (mandatory occupational pension): A lump sum of total employee and employer contributions plus accrued interest is paid.

Survivor Benefits

Survivor grant (social insurance): If the insured received an old-age or disability pension at the time of death, the benefit is a lump sum of the present value of the pension that would have been paid from the insured's death until age 75. If the insured was not a pensioner, a lump sum of the present value of 15 years of the pension is paid.

The present value of the pension is calculated using the 91-day Treasury bill interest rate or 10%, whichever is lower.

The current 91-days Treasury bill rate is 11.9324% (as of June 30, 2017).

Survivor grant (mandatory occupational pension): A lump sum of total employer and employee contributions plus accrued interest is paid.

Administrative Organization

National Pensions Regulatory Authority (http://www.npra.gov.gh/) provides general supervision.

Social Security and National Insurance Trust (http://www.ssnit.org.gh/) administers the social insurance program through a tripartite management board.

Private trustees approved by the National Pensions Regulatory Authority, with the assistance of registered pension fund managers and custodians, administer the mandatory occupational pension program.

Sickness and Maternity

Regulatory Framework

First laws: 1972 (social security) and 2003 (health insurance).

Current laws: 2003 (labor code) and 2012 (health insurance).

Type of program: Social insurance (medical benefits) and employer-liability (cash maternity benefits) system. Cash maternity and medical benefits only.

Coverage

Social insurance: Residents of Ghana.

Exclusions: Military and police personnel.

Employer liability: Employed persons.

Exclusions: Self-employed persons.

Source of Funds

Insured person

Social insurance: See source of funds under Old Age, Disability, and Survivors; pensioners and persons aged 70 or older are exempt.

Employer liability: None.

Self-employed person

Social insurance: See source of funds under Old Age, Disability, and Survivors. If the insured is not covered by social insurance under Old Age, Disability, and Survivors, a premium of 7.20 to 48 cedi, based on a means test; pensioners and persons aged 70 or older are exempt.

Employer liability: Not applicable.

Employer

Social insurance: See source of funds under Old Age, Disability, and Survivors.

Employer liability: The total cost.

Government

Social insurance: The cost of benefits for the aged, the needy, and children younger than age 18 if both parents have paid the annual premium. Additional financing from a 2.5% value added tax on general goods and services.

Employer liability: None; contributes as an employer.

Qualifying Conditions

Cash maternity benefits (employer liability): There is no minimum qualifying period.

Medical benefits (social insurance): There is no minimum qualifying period. Insured persons who lose coverage must wait one month before claiming benefits again.

Sickness and Maternity Benefits

Maternity benefit (employer liability): 100% of the employee's daily earnings is paid for 12 weeks; 14 weeks for multiple births or serious complications. The employee is also entitled to up to one hour a day for nursing breaks.

Workers' Medical Benefits

The National Health Insurance program provides a range of healthcare services free of charge, including inpatient and outpatient services, emergency care, eye treatment, and dental and maternity care. The program does not cover costs for rehabilitation (other than physiotherapy), prostheses, certain surgeries (including organ transplants and cosmetic surgeries), antiretroviral treatment for HIV, dialysis, and cancer treatment (other than cervical or breast cancer).

Dependents' Medical Benefits

Medical benefits for dependents are the same as those for the insured.

Administrative Organization

Social Security and National Insurance Trust (http://www.ssnit.org.gh/) collects contributions for the social insurance program and transfers them to the National Health Insurance program (http://nhis.gov.gh/nhia.aspx/).

Ministry of Employment and Labour Relations (http://www.ghana.gov.gh/) provides general supervision of the employer-liability program.

Work Injury

Regulatory Framework

First law: 1940.

Current law: 1987 (workmen's compensation).

Type of program: Employer-liability system through private carriers.

Coverage

Employed persons.

Exclusions: Military personnel, self-employed persons, casual workers, employers' family members, and agricultural employees working in enterprises with fewer than five workers.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: The total cost (provides benefits directly to employees or pays insurance premiums).

Government: None; contributes as an employer.

Qualifying Conditions

Must have at least six months of coverage.

Temporary Disability Benefits

The benefit is the difference between the insured's earnings before the disability began and the actual or potential earnings after the disability began. The benefit is paid after a five-day waiting period for up to 24 months; may be extended for up to six months.

The benefit may be paid periodically, as a lump sum or a combination of both, depending on the estimated duration of the disability.

Permanent Disability Benefits

If the insured is assessed with a total disability, a lump sum of 96 months of the insured's earnings before the disability began is paid.

Constant-attendance supplement: If the insured requires the constant attendance of others to perform daily functions, 25% of the total disability benefit is paid.

Partial disability: A percentage of the full lump sum is paid according to the assessed degree of disability.

Workers' Medical Benefits

Benefits include medical, surgical, hospital, and nursing care and the cost of medicine and appliances up to specified amounts.

Survivor Benefits

Survivor benefit: A lump sum of 60 months of the insured's earnings at the time the work injury occurred or the occupational disease began is paid to the insured's dependents at the court's discretion; a reduced benefit is paid if the survivor was only partially dependent.

Funeral grant: If there are no dependents, the employer pays the entire cost of the funeral; if there are dependents, the employer pays for the cost of the funeral, up to a maximum.

Administrative Organization

Ministry of Employment and Labour Relations (http://www.ghana.gov.gh/) enforces the law.

Unemployment

Regulatory Framework

Under the 2003 Labour Act the employer pays any remuneration earned by the worker before termination, any deferred pay due to the worker prior to termination, and any compensation due to the worker related to a sickness or an accident.