Dr Tinkorang
The Social Security and National Insurance Trust (SSNIT) will tomorrow roll out an initiative, the Self-Employed Enrolment Drive (SEED) which aims at admitting many more contributors from the informal sector.
SEED was informed by various factors one of which is the dearth of social security cover for most persons in the informal sector.
During a pre-launch with a cross section of the media, the Director General of SSNIT, Dr. Tinkorang who is in the driving seat of the project as it were solicited the support of journalists towards the success of the initiative.
Social Security coverage in the country has overly focused on the formal sector which is made up of public and private sector workers, SSNIT has noted, adding that “the Trust, as of 2017, had a total active membership of about 1.2 million.”
A comprehensive strategy by SSNIT management to improve coverage and increase the contributor base has yielded positive results, leading to an increase in the total active membership of the Scheme from about 1.2 million to over 1.8 million as of March 2023.
This figure, SSNIT notes, even though an improvement over the 1.2 million in 2017, is still not sufficient as compared to the estimated working population of 9.9 million; out of which 6.7 million are self-employed with 3.1 million falling between the age bracket of 15 and 45, according to the Ghana Statistical Service 2021 Population Census.
This clearly leaves room for improvement, especially when less than two percent out of the Trust’s current active membership are self-employed, SSNIT has stated.
Additionally, statistics from the National Pensions Regulatory Authority (NPRA) indicate that only 600,000 self-employed persons have some form of social security cover, SSNIT has observed, adding that “this implies that about 90 per cent of self-employed workers do not have any form of social security cover.”
The initiative will guarantee contributors who qualify regular source of income, monthly pension during old age until death and offer disability insurance to contributors in the event of invalidity among others.
It will also provide life policy by paying the survivors of members who pass on lump sums.
It also exempts, according to SSNIT, members from paying National Health Insurance Scheme (NHIS) premiums and above all ensures that every worker has social protection.
SEED focuses on enrolling self-employed persons and workers in the informal sector on the SSNIT Scheme to contribute regularly on their full earnings.
It provides social protection in the form of partial income in old age or retirement. To ensure that self-employed persons and workers in the informal sector have social protection and a monthly pension among others, the Trust is rolling out the Self-Employed Enrolment Drive (SEED).
The main aim of the initiative is to sign up 500,000 self-employed workers and reactivate 250,000 dormant contributors to provide them with social protection, reduce poverty and over-dependence on benefactors (e.g. family relations, friends, the state) during old age and in the event of permanent invalidity. Nominated dependants of members are also guaranteed protection in the form of a survivors lump sum paid after the death of a member.
By A.R. Gomda