Article series: Understanding SSNIT — Part 2 of 3

This is Part 2 of our three-part SSNIT series. Part 1 covers what employees are entitled to → Part 3 covers Tier 3 and tax reduction →

Running a payroll in Ghana means two obligations to SSNIT, not one.

There’s the employee contribution — the 5.5% you deduct from the employee’s basic salary and hold on their behalf.

And there’s the employer contribution — the 13% you pay from the business’s own funds, on top of the employee’s salary.

Both go to SSNIT, on the same deadline, every month. And the liability for getting this right sits entirely with the employer.

The Numbers: Who Pays What

Important: The 13% employer contribution is split across two schemes:

• 10.5% goes directly to SSNIT (Tier 1)
• 2.5% goes to a Tier 2 trustee — a pension fund of the employee’s choice (or a default trustee if the employee hasn’t chosen)

So SSNIT receives a total of 16% of basic salary per employee per month (5.5% employee + 10.5% employer). The remaining 2.5% from the employer goes to the Tier 2 fund.

Why the distinction matters: The Tier 2 contribution doesn’t go to SSNIT — it goes to a separate trustee (National Pensions Regulatory Authority approved). Some employers make the mistake of sending all 13% to SSNIT. That’s incorrect, and it creates a deficiency in the Tier 2 fund.

Contribution base = Basic salary only. Allowances — housing allowance, transport allowance, meal allowance — are excluded from the contribution base. SSNIT contributions are not calculated on gross salary.

Who Must Be Registered?

Every employer operating in Ghana — whether a company, sole trader, partnership, or NGO — that has at least one employee must register with SSNIT as an employer.

Every employee must also be individually registered. When a new employee joins, you have an obligation to:

1. Obtain their SSNIT number (if they already have one)
2. Register them with SSNIT (if they don’t have one yet)
3. Begin contributions from their first month of employment

There is no grace period. Contributions are due from the first month.

The Deadlines: When Contributions Must Be Paid

So for October salaries: both the SSNIT Tier 1 contribution and the Tier 2 trustee contribution must be submitted by November 14.

There is also an annual obligation: submit your full employee list to SSNIT by January 31 of each year, covering all employees and their contribution records for the previous year.

The Penalties for Non-Compliance

SSNIT penalties are among the most severe in Ghana’s compliance landscape.

Late payment penalty: 3.5% per month, compounded.

That means if you owe GHS 10,000 in SSNIT contributions and you’re three months late:

• Month 1: GHS 10,000 × 3.5% = GHS 350 penalty → balance GHS 10,350
• Month 2: GHS 10,350 × 3.5% = GHS 362 penalty → balance GHS 10,712
• Month 3: GHS 10,712 × 3.5% = GHS 375 penalty → balance GHS 11,087

After three months of non-payment, you owe GHS 11,087 on a GHS 10,000 liability. The compounding is real and it moves quickly.

Criminal liability also exists for persistent non-compliance. Employers who wilfully fail to register or remit contributions can be prosecuted.

The Common Mistakes Employers Make

1. Calculating contributions on gross salary instead of basic salary

SSNIT contributions are based on basic salary only. If you include allowances in the calculation base, you’re over-deducting from the employee and over-remitting to SSNIT. This needs to be corrected.

2. Sending all 13% to SSNIT instead of splitting the Tier 2 portion

10.5% goes to SSNIT. 2.5% goes to the Tier 2 trustee. They’re not the same account.

3. Not registering new employees immediately

A common pattern: the new staff member starts, payroll is processed, but the SSNIT registration is delayed. Contributions are missed for those early months and the employee’s pension record has a gap.

4. Lump-summing contributions

Some employers collect SSNIT from employees monthly but remit every three or six months. Even if the employee eventually receives full credit, the employer has already incurred months of penalty.

5. Not getting a receipt

Always obtain a receipt or acknowledgement from SSNIT for each submission. If there’s ever a dispute about whether contributions were paid, the receipt is your evidence.

How to Check If Your Business Is Compliant

Ask these four questions:

1. Does every employee on your payroll have an active SSNIT number?
2. Are contributions being calculated on basic salary (not gross)?
3. Is the 2.5% Tier 2 contribution going to the right trustee — not to SSNIT?
4. Are remittances arriving at SSNIT and the trustee by the 14th of each month?

If the answer to any of these is “I’m not sure” — that’s where to start.

Coming Up: Part 3

Part 3 of this series looks at Tier 3 — the voluntary pension tier that can reduce your income tax, supplement retirement income, and even be used as a loan guarantee. Worth reading if you haven’t yet.

Read Part 3: How to Use Tier 3 to Reduce Your Tax Bill →

Talk to FINT Advisory About Payroll Compliance →

Get Our Automated Payroll System — Generates GRA and SSNIT Schedules With One Click →

This article is for general information purposes only. Contribution rates and penalty structures are subject to change. Consult a qualified advisor for advice specific to your payroll situation.