The National Pensions Regulatory Authority (NPRA) is tightening its grip on employers who fail to pay workers’ pension contributions, revealing that more than 100 companies have already been taken to court over such violations.

According to the Authority, these enforcement have led to the recovery of over GH¢27 million from defaulting employers' money that rightfully belongs to workers planning for life after retirement.

But officials say this is only the beginning, warning that even stricter sanctions are on the way for those who continue to flout the law.

Speaking at a press conference in Accra on April 9, 2026, NPRA’s Deputy Chief Executive Officer, Victor Azuma, disclosed that total pension funds under management have now crossed the GH¢100 billion mark, a sign of growth in the sector.

Pension: NPRA to prosecute defaulting employers

However, he was quick to point out a worrying gap; the informal sector, which makes up a large portion of Ghana’s workforce.’

He stressed that the persons in the informal are still underrepresented.

Currently, the sector has contributed just GH¢1.2 billion, representing only 16 percent of total contributions.

Azuma attributed this to several challenges, including a lingering lack of trust in financial systems and the unpredictable nature of incomes in the informal economy.

“A number of factors account for the lack of interest in the informal sector. One is trust. We all saw what happened within the economy, particularly with microfinance institutions and how businesses collapsed, so there is a lack of trust in the system,” he said.

He added that irregular income patterns among informal workers also affect their ability to contribute.

“The issue is also efficiency in engaging these informal workers. They do not earn regular income, and that has affected contributions from the sector,” he stated.

Beyond the informal sector, the NPRA is also concerned about persistent non-compliance among some private employers.

In some cases, companies deduct pension contributions from workers’ salaries but fail to forward the money to the appropriate schemes, effectively denying employees their retirement security.

“Reports from trustees of registered schemes indicate that some employers have refused to pay contributions of their staff despite having deducted these amounts from their earnings. Some have not even registered schemes for their staff for the payment of mandatory Tier Two deductions. These violations of workers’ rights must not be condoned,” Azuma stated.

He also cautioned employers to act swiftly or face legal consequences.

“The Authority is therefore cautioning all employers to register Tier Two schemes and pay mandatory contributions as a matter of urgency. They should desist from these acts or face prosecution,” he said.

Azuma noted that the NPRA has significantly ramped up its monitoring efforts, including deploying compliance officers to audit company records and enforce payments.

“In 2025, the Authority deployed compliance officers to inspect the books of employers to enforce payments. Through this exercise, several recalcitrant employers have been prosecuted, and over GH¢27 million, about 30 per cent of the defaulted amount, has been retrieved,” he stated.

Looking ahead, the Authority is exploring ways to strengthen the pension system further. This includes plans to introduce new investment guidelines to help grow pension funds, while also engaging the government to settle outstanding arrears owed to the Social Security and National Insurance Trust (SSNIT).

“The Authority is engaging government to honour its obligations to workers,” Azuma noted.

The NPRA is also reviewing its stance on offshore investments, which were restricted two years ago to help stabilise the cedi. That policy could soon change as part of efforts to diversify pension fund portfolios.

“It is being looked at under a number of factors to determine whether it is time to lift the ban on offshore investments. For purposes of diversification, it is something we need to consider, although some of these investments have not performed as expected,” he stated.

NA/VPO

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