The 18.5% and how it splits
Ghana’s pension system takes a combined 18.5% of basic salary each month: the employer contributes 13% and the employee 5.5%, deducted from pay. That combined amount is then split across the first two tiers.
- Tier 1 — 13.5% goes to SSNIT for the state pension (mandatory, defined benefit)
- Tier 2 — 5% goes to a licensed private trustee (mandatory, defined contribution, lump sum)
- Tier 3 — voluntary top-ups up to 16.5%, with attractive tax relief
Who must register
Every employer with at least one worker must register with SSNIT and register each employee before their first contribution. Employees keep the same SSNIT number for life across jobs, so collect it during onboarding — Nobicel’s self-onboarding asks for it up front.
Monthly remittance
Contributions for a month are due by the 14th of the following month, accompanied by a contribution report listing each worker, their basic salary and the amounts. Late payment attracts a surcharge of 3% per month, so this is a deadline worth automating.
Nobicel generates the Tier 1 and Tier 2 schedules from every pay run and keeps a filed copy, so your accountant reviews rather than rebuilds.
Tier 3 in practice
Tier 3 is the underused gem: voluntary contributions enjoy tax relief, effectively letting employees save for retirement out of pre-tax income. Payroll-deducted Tier 3 through a provident fund is one of the cheapest benefits an employer can offer.
This guide is general information for Ghanaian employers, not legal or tax advice. Rates and rules change, so check current guidance from GRA and SSNIT before acting on it.