What Happens When Your Boss Fails to Pay Your SSNIT Contributions? Here Is What the Law Says

Many workers in Ghana only realise during a benefits claim or a routine SSNIT check that their employer has not been paying their monthly contributions.

This is not a minor administrative lapse; it is unlawful, attracts significant penalties and can lead to prosecution.

This guide provides a clear and updated explanation based on the National Pensions Act, 2008 (Act 766) and current SSNIT and NPRA enforcement practices.

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Employer Legal Obligations

Every formal sector employer must register you with SSNIT and begin contributions from your first month of work, whether you are:

• On probation

• On a fixed-term or contract basis

• A casual or temporary worker

• Permanent staff

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From your basic salary, the employer deducts 5.5% (your Tier 1 contribution) and adds 13% of their own, totalling 18.5% paid directly to SSNIT.

The full amount, together with a monthly contribution report, must reach SSNIT by the 14th day of the following month. For example, October contributions must be paid by 14 November.

Penalties for Late or Non-Payment

Failure to pay on time attracts a 3% compound penalty per month or part of a month on the outstanding amount. This applies to both the employee and employer portions.

The penalty compounds monthly, so the debt grows quickly:

• Six months late - effective penalty about 19.5%

• Twelve months late - effective penalty about 42.6%

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After issuing a formal demand notice, usually giving 30 to 40 days to settle, SSNIT or the NPRA can:

• Levy additional administrative charges

• Seize bank accounts or assets

• Initiate civil recovery or criminal prosecution

It Is a Criminal Offence

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Under Sections 63 and 83 of Act 766:

• Deliberately failing to deduct or remit contributions, especially money already deducted from your salary, is a criminal offence.

• Deducting the 5.5% but keeping it instead of sending it to SSNIT amounts to misappropriation or theft.

• Penalties upon conviction include heavy fines and possible imprisonment.

• SSNIT and the NPRA actively prosecute. In recent years, dozens of companies and directors have been arraigned, with courts ordering full arrears plus penalties.

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What Workers Should Do If Contributions Are Missing

1. Check your SSNIT record immediately
   Online portal: portal.ssnit.org.gh
   USSD: *677#
   Mobile app or any SSNIT branch. You can see every contribution credited to your account.

2. Gather evidence
   Payslips showing deductions, employment contracts or letters, bank statements and any other proof.

3. Report to SSNIT or the NPRA
   Visit the nearest branch or use their online complaint channels. You can request anonymity at the early stage. SSNIT will investigate, issue demand notices and recover the money with penalties on your behalf.

4. You are legally protected
   Act 766 and the Labour Act prohibit victimisation or dismissal for reporting default. If an employer retaliates, you may have grounds for an unfair dismissal claim.

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Why This Really Matters

Your SSNIT contributions form your basic pension protection:

• Old age pension, requiring a minimum of 180 months or fifteen (15) years of contributions

• Invalidity pension if you become permanently disabled

• Survivors lump sum for your family if you pass away

Missing contributions create permanent gaps that reduce your future pension and may even disqualify you entirely. Ghana’s pension system is still developing, and every cedi not paid today is money lost from your retirement income tomorrow.

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Take Action Today

Do not wait until retirement to discover missing contributions. Check your SSNIT statement at least every six months. If payments are late or missing:

• Raise the issue internally first, as many employers correct the problem when challenged

• If nothing changes, report immediately to SSNIT or the NPRA

The law is firmly on the side of the worker. SSNIT has a dedicated recovery and prosecution unit, and enforcement has become much stricter in recent years. Your social security is your right. Protect it.