A study into non-payment of employer / employees’ contributions to SSNIT Pension Scheme in the Eastern and Volta Regions of Ghana

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The thrust of the study was to explore the non-payment of employer and employee’s contributions into the SSNIT Pension Scheme. This was achieved by determining the causes of non-payment of contributions, examining the strategies adopted to reduce non-payment of SSNIT contributions and analyzing the trend of non-payment of the employer and employees’ contributions. The cluster sampling method was used to select respondents proportionately from the eight (8) branches of the SSNIT administration in the study area. This included Koforidua, Kade, Somanya, Akim Oda, Nkawkaw, Mampong-Akuapem, Ho and Hohoe. In order to select the respondents from each branch, the list of all employers from each branch was ascertained from each branch office by using the systematic sampling method. A sample size of 340 was drawn from a total population of 2,713 employers using the Yamane’s 1967 simplified formula corrected to proportions. Among the major findings of the study was that, the major causes of non-payment of SSNIT contributions were inadequate funds and long distance to SSNIT offices. It was also found that, the major strategy employers would want SSNIT to adopt in reducing non-payment of contributions was flexible terms of payment. The trend analysis revealed that, average employer and employees’ compliance rate decreased from the year 2006 to 2009. Among the recommendations made was that, SSNIT should establish satellite offices in most major towns and communities in the various branches to increase access to the offices for the payment of contributions.
A thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirements for the degree of Commonwealth Executive Masters of Business Administration,June, 2011