Informal sector employers who fail to pay employees’ pensions will be prosecuted

Informal sector employers who fail to pay employees’ pensions will be prosecuted – NPRA

2d ago | Source: GNA

The National Pensions Regulatory Authority (NPRA) in the Bono Region has cautioned employers in the informal sector to ensure the regular payment of their workers’ monthly pension contributions or face prosecution.

Mr Enoch Okomfo Okonah, Assistant Manager in charge of Compliance at the Bono Regional Office of the NPRA, said employers who default could be fined up to 2,000 penalty units, pay the defaults, or be sentenced to two years imprisonment—or suffer both penalties.

In an interview with the Ghana News Agency (GNA) in Sunyani, he explained that while prosecution was not the Authority’s preferred approach, employers must comply with the Pensions Act to avoid legal consequences.

He noted that compliance in the region had been encouraging, adding: “Whenever we issue a demand notice, many employers comply.”
Touching on the Third-Tier Pension Scheme, Mr Samuel Baffour-Awuah, also an Assistant Manager (Compliance) at the Regional Office, said the scheme remained flexible and was designed to make pension contributions accessible to all categories of workers.

He said the initiative targeted petty traders, market women, truck pushers, hawkers, hairdressers, dressmakers, carpenters, mechanics, welders, and others engaged in small-scale and menial occupations.

Under the scheme, contributors could pay as little as GH¢2 a month, although future benefits were dependent on the level of contributions.
Mr Baffour-Awuah emphasised that pensions ensured long-term financial security and urged informal sector workers to take advantage of the Third-Tier Scheme for their own welfare.