The Social Security and National Insurance Trust (SSNIT) in consultation with the National Pensions Regulatory Authority (NPRA) has increased the monthly pension payment by 25% for 2023.
This is in line with Section 80 of the National Pensions Act 2008 (Act 766).
According to a statement from the SSNIT, all pensioners on the scheme as of December 31, 2022 will have their monthly pension increased by a fixed rate of 19% plus a redistributed flat amount of ¢73.58.
The effective increase in pensions would therefore range from 19.05% for the highest-earning pensioner to 43.53% for the lowest-earning pensioner.
Accordingly, the highest-earning pensioner as of December 31, 2022 will receive ¢169,725.89 per month in 2023.
The lowest-earning pensioner as of December 31, 2022 will have his/her monthly pension increased to ¢430.58 in 2023, from ¢300 in 2022.
Pensioners will be paid on the third Thursday of every month.
SSNIT also said redistribution is a mechanism applied to the indexation rate to cushion low-earning pensioners in conformity with the solidarity principle of social security.
The SSNIT Scheme, like any other defined benefit scheme, it said, pays pensions which mirror the earned salaries on which contributions were paid.