Government to increase employee pension contributions

Accra, Nov. 18, GNA - Dr Kwabena Duffuor, Minister of Finance and Economic Planning, said on Wednesday that government would increase the salary contribution of employees from 12.5 per cent to 13 per cent to increase their pension benefits.

He said the increase would be under each of the three-tier new Pension Scheme.

Dr Duffuor who made this known in the 2010 Budget statement to Parliament said under the new Pension Scheme to be implemented in January next year, Ghana's economy would be stimulated with an injection of about one billion Ghana cedis being pension contributions. He noted that the Scheme would enhance domestic savings, make available long term funds for investment, which would accelerate economic growth and development.

"The pension contributions would add further impetus to the development of the Ghanaian financial markets, and as a long-term investment fund, it would lead to increased demand for quality bond, equities and other investment products, "he said.