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25% increase in pension payments unfair – Economist

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An Economist, Dr. Felix Nyarko has described the 25 percent increase in monthly pension payments by the Social Security and National Insurance Trust (SSNIT) as unfair.

He explained that the increase will not be enough for pensioners considering the inflation rate in the country.

According to him, the increase in pension payments should be above the current inflation rate of 54.1% to enable pensioners to deal with economic difficulties.

“I think that SSNIT can do better. This is not fair in the sense that inflation as of the end of December 2022 was 54.1%. This cannot cushion what pensioners are going through by looking at the economic indicators of this country.

“If the increment is about 50% or 60%, I think that will be a bit fair enough. Something that would be above the inflation of the country,” he told JoyNews in an interview.

The review by SSNIT was a result of an increased fixed rate of 19 per cent, plus a redistributed flat amount of GH¢73.58.

By the increment, the minimum paid pensioner will receive GH¢430.58 while the highest paid pensioner receives GH¢169,725.89.

The Director-General of SSNIT, Dr. John Ofori-Tenkorang, said the increase although not enough, is better than some suggested solutions.

 “I would admit that it is not what under normal economic circumstances we should be aiming to do, but I hope you will agree with me that it is better than some of the alternatives that some people have.”

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