Only 1% out of the 85% workforce in the informal sector in Ghana contribute to pension, pensions regulatory authority discloses

The National Pensions Regulatory Authority (NPRA) in Ghana has disclosed that only one percent of informal sector workers are enrolled in any form of pension schemes.

Chief Executive Officer (CEO) of the NPRA, Hayford Atta Krufi

It is estimated that about 85 percent of the country’s workforce are found in the informal sector, but only one percent contributes to one form of pension scheme or the other.

This indicates that most of these workers would have to rely on the benevolence of family and friends to survive when they are no longer in active service.

The Chief Executive Officer (CEO) of the NPRA, Hayford Atta Krufi made the revelation while he spoke to journalists during a workshop.

According to him, the menace “paints a very gloomy picture for the Ghanaian working force.”


“Poverty and other old age, as well as retirement challenges ahead of the Ghanaian worker within the coming years, may be uncontrollable if this is not addressed,” he warned.

Nowadays, he said, pension issues have become more of a social and economic challenge than before and that a lot must be done to sensitise the working population not only to encourage them but also to provide the assistance and support for them to enrol on pension schemes, so they can enjoy a comfortable and stress-free retirement.

The CEO, however, noted that urgent and drastic action was therefore needed in order to bring informal sector worker on board pension schemes.

“We are working towards the provision of better old-aged-life for all Ghanaians by ensuring retirement income security. As you might be aware, the Authority has been given prosecutorial powers to prosecute defaulting employers. I mean employers who fail to pay pension contributions of their employees. In the light of this, we have successfully trained some of our staff and our legal department has started processing persistent offenders for prosecution," he said.

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