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Part of the guideRunning payroll in Nigeria, Ghana and Kenya: an employer's guide
The short answer
Ghanaian employers pay 13% of each employee's basic salary into pensions and deduct 5.5% from the employee, a mandatory 18.5% in total. Of that, 13.5% goes to SSNIT as Tier 1 (including 2.5% passed to the National Health Insurance Scheme) and 5% goes to a privately managed Tier 2 occupational scheme; Tier 3 is voluntary. For 2026, contributions apply to basic salary between GH¢587.80 and GH¢69,000 a month and are due within 14 days after the end of the month.
Ghana's pension system, set up by the National Pensions Act, 2008 (Act 766), splits one contribution between a state scheme, a private occupational scheme and the national health insurer. Employers who understand the split avoid the most common error, which is paying everything to SSNIT and nothing to Tier 2. This article explains the structure, the 2026 limits and the deadlines. For PAYE and the Nigeria and Kenya equivalents, see our payroll guide for Nigeria, Ghana and Kenya.
How the three tiers fit together
| Tier | What it is | Contribution | Managed by |
|---|---|---|---|
| Tier 1 | Basic national social security scheme, paying a monthly pension | 13.5% of basic salary, of which 2.5% goes to NHIS | SSNIT |
| Tier 2 | Mandatory occupational scheme, paying a lump sum | 5% of basic salary | Private trustees and fund managers regulated by the NPRA |
| Tier 3 | Voluntary provident fund or personal pension | Optional; tax relief up to 16.5% of basic salary | Private schemes registered with the NPRA |
The mandatory 18.5% is funded 13% by the employer and 5.5% by the employee. The employer deducts the employee's share from pay and sends the full amount to the right places: 13.5% to SSNIT and 5% to the Tier 2 scheme the employer has chosen.
What an employer has to set up
- Register the business with SSNIT as an employer before the first payroll.
- Register each new employee with SSNIT, so that contributions are credited to the right member record.
- Choose a Tier 2 occupational scheme through an NPRA-licensed corporate trustee, or join a master trust scheme, and sign each employee up to it.
- Agree the monthly contribution report format with SSNIT and the trustee, showing each employee's basic salary and share.
- Decide whether to offer a Tier 3 scheme, and if so, how much the employer will match.
Many smaller employers leave Tier 2 until an inspection prompts them, and then face arrears plus surcharges going back years. Setting it up before the first payroll is far cheaper than catching up later. Employees can ask their trustee or the NPRA for a statement, so missing Tier 2 contributions tend to come to light eventually.
The 2026 earnings limits
Contributions are calculated on basic salary, not gross pay, and only between a floor and a ceiling. SSNIT and the National Pensions Regulatory Authority (NPRA) revised both limits from 1 January 2026.
| Limit | 2025 | From 1 January 2026 | Tier 1 contribution at the limit (13.5%) |
|---|---|---|---|
| Minimum insurable earnings (monthly) | GH¢539.19 | GH¢587.80 | GH¢79.40 |
| Maximum insurable earnings (monthly) | GH¢61,000 | GH¢69,000 | GH¢9,315.00 |
The floor rose with the national daily minimum wage. Basic salary above GH¢69,000 a month does not attract mandatory contributions, although an employer and employee can still contribute voluntarily to Tier 3.
Worked examples
Basic salary of GH¢5,000
| Line | Amount | Calculation |
|---|---|---|
| Employee share (5.5%) | GH¢275 | Deducted from pay |
| Employer share (13%) | GH¢650 | Paid on top of salary |
| Total mandatory | GH¢925 | 18.5% of GH¢5,000 |
| To SSNIT (Tier 1) | GH¢675 | 13.5%, of which GH¢125 (2.5%) is passed to NHIS |
| To the Tier 2 scheme | GH¢250 | 5% |
The employee's GH¢275 is deducted before PAYE is calculated, so it reduces taxable income. Our Ghana PAYE bands article shows how that flows through to the tax figure.
Basic salary of GH¢80,000
The ceiling applies, so contributions are calculated on GH¢69,000, not GH¢80,000. The total is 18.5% × GH¢69,000 = GH¢12,765: GH¢3,795 from the employee and GH¢8,970 from the employer. SSNIT receives GH¢9,315 (the maximum Tier 1 contribution) and the Tier 2 scheme receives GH¢3,450. The GH¢11,000 above the ceiling attracts nothing unless the parties choose Tier 3.
Tier 3 and tax relief
Tier 3 is voluntary. Contributions by employer and employee to an approved provident fund or personal pension scheme are deductible for income tax up to 16.5% of monthly income for formal-sector workers, to the extent of each party's contribution. Combined with the 18.5% mandatory contribution, up to 35% of basic salary can be saved for retirement with tax relief.
Withdrawals from a formal-sector Tier 3 scheme before retirement and before ten years are taxable. That makes Tier 3 a long-term savings product rather than a short-term benefit, and employers who offer it should explain the lock-in to staff. For an employee on GH¢5,000 basic, a 5% employer match into Tier 3 adds GH¢250 a month of retirement saving, and the employee's own matching GH¢250 also reduces their taxable income.
Deadlines, penalties and enforcement
Mandatory contributions are due within 14 days after the end of the month they relate to, both to SSNIT and to the Tier 2 scheme. That is a day earlier than the PAYE deadline of the 15th, so treat the 14th as the working date for both.
Late or unpaid contributions attract a surcharge of 3% a month, compounded, and non-payment is an offence under section 83 of Act 766. The NPRA has stepped up enforcement: it reports recovering more than GH¢27 million in outstanding Tier 2 contributions in 2025 through inspections, demand notices, court-supervised payment plans and prosecutions.
What a three-month delay costs
Using the GH¢5,000 example, GH¢925 unpaid for three months grows at 3% a month compounded: GH¢925 × (1.03³ − 1) is about GH¢85.77 in surcharge. For a 50-person payroll with similar salaries, that is about GH¢4,289 in surcharges on GH¢46,250 of arrears, before legal costs.
Common errors
- Paying the full 18.5% to SSNIT and nothing to Tier 2.
- Calculating contributions on gross pay instead of basic salary.
- Ignoring the GH¢69,000 ceiling, so senior staff are over-deducted.
- Using 2025 limits in January 2026 payroll.
- Missing the 14-day deadline because the team is working to the PAYE date of the 15th.
The payroll deadlines article puts the Ghana dates next to Nigeria's and Kenya's.
Where Pryme fits
Pryme payroll covers Ghana as well as Nigeria and Kenya. The Pryme business account holds NGN, USD, GBP and EUR, so ask us how cedi salaries and remittances are funded and paid before you plan your first Ghana run. Whatever the route, the duties in this article stay with you as employer: set SSNIT, Tier 2 and PAYE aside on pay day and remit pensions within 14 days of month end. Above a threshold you set, a second named approver must sign off before money moves, and bulk payouts check account names before you approve. Finance and Compliance agents, built and certified by Pryme Intelligence, a separate company, prepare the work inside a mandate you set; nothing moves without approval, above the mandate's ceiling a person decides, and each step sits on an audit trail. For the full statutory checklist across the three countries, read the employer's payroll guide.
Questions people ask
What is the SSNIT contribution rate in 2026?
18.5% of basic salary: 13% from the employer and 5.5% from the employee. 13.5% goes to SSNIT (Tier 1, including 2.5% for NHIS) and 5% to a Tier 2 scheme.
What is the maximum SSNIT contribution in 2026?
Contributions are capped at basic salary of GH¢69,000 a month from 1 January 2026. The maximum Tier 1 contribution at 13.5% is GH¢9,315 a month.
When are SSNIT contributions due?
Within 14 days after the end of the month the contributions relate to. The same deadline applies to Tier 2.
What is Tier 2 pension in Ghana?
A mandatory occupational scheme that receives 5% of basic salary. It is run by private trustees and fund managers regulated by the NPRA, and pays a lump sum on retirement.
What happens if an employer pays SSNIT late?
Unpaid contributions attract a 3% monthly compounded surcharge, and non-payment is an offence under Act 766 that the NPRA can prosecute.
Sources
- SSNIT: Public notice on minimum and maximum insurable earnings for 2026 · accessed Oct 2026
- TaxLawGH (MSL Business School): Ghana pensions and retirement tax · accessed Oct 2026
- Ghanaian Times: NPRA cracks down on pension defaulters, recovers GH¢27m (April 2026) · accessed Oct 2026
- Ghana Revenue Authority: PAYE · accessed Oct 2026
- TaxLawGH (MSL Business School): Ghana PAYE · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.