Private school owners want percentage of SSNIT contributions reduced

Ghana National Association of Private Schools members have urged the government to change the contribution to the Social Security and National Insurance Trust (SSNIT).

According to Rev. Kow Richardson, National Executive Member of Senior High Schools in Effutu and Former Chairman of Ghana National Association of Private Schools, who spoke to the press, private schools are facing uncontrollable challenges.

He explained his point by saying that taxes on private schools are breaking their necks, and as a result, most private schools have closed, particularly when it comes to paying SSNIT to their employees.

The founder and proprietor of Uncle Rich Schools lament that the government should eliminate some of the taxes on private schools in order for them to expand their operations and employ more people, thereby lowering the unemployment rate.

He believes that the payment of SSNIT CONTRIBUTIONS, which is mandatory for all employers to make for their employees, is a good thing, but the percentages on the payment are too high. For example, if the employer pays his employee Ghc1,000, he must deduct 13% of that amount, add 5%, and pay SSNIT contributions. How much will he be paid at the end of the month?

"The current rate is high. Assume you receive Ghc1000 and must pay SSNIT contributions of approximately GHC269. What would be left? I propose that the percentage be reduced by ten percent. The law should be amended by Parliament. We could consider a constitutional amendment when the person reaches the age of 50.”

Workers in Ghana are obliged to contribute to the SSNIT Scheme during their working life to receive monthly pensions during retirement or when incapacitated. Upon the demise of the contributor, his/her nominated persons will receive the survivor’s benefit in cash.

Membership of the SSNIT Pension Scheme is open to workers in both private and public sectors. Only Officers and men of the Ghana Armed Forces and Categories of persons explicitly stated by the 1992 Constitution of Ghana are expressly exempted. The scheme is also optional for the self-employed.

The primary responsibility of the Trust is to replace part of the lost income of workers in Ghana due to Old Age, Invalidity or Death of a member where dependants receive lump sum payment. It is also responsible for the payment of Emigration benefits to a non-Ghanaian member who is leaving Ghana permanently.

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