The Bank of Ghana’s Monetary Policy Report for July has revealed an increase in private sector contributions to the Social Security and National Insurance Trust (SSNIT) Pension Scheme (Tier-1).
The report highlights a 2.4% rise in SSNIT contributions for the first half of 2024, reflecting steady growth in labor market activities within the manufacturing sub-sector.
In May 2024, total private sector workers’ contributions surged by 39.6% year-on-year to GH¢470.92 million, compared to GH¢337.23 million during the same period in 2023. Cumulatively, for the first five months of 2024, contributions grew by 28.8%, amounting to GH¢1.97 billion, up from GH¢1.53 billion recorded in the corresponding period of 2023.
The total number of private sector SSNIT contributors, which is used as a gauge of employment conditions, also saw a 2.7% increase to 1,007,341 in May 2024, compared to 980,808 during the same period in the previous year. For the first five months of 2024, the total number of contributors rose by 4.8% to 5,063,676, from 4,829,487 recorded in 2023.
Employment growth which may have resulted from the progress recorded in the manufacturing sub-sector is said to have spurred the surge in contributions.
The Bank of Ghana’s report also indicates an improvement in direct tax collection, with total direct taxes increasing by 43.7% year-on-year in May 2024 to GH¢4.11 billion, compared to GH¢2.86 billion in May 2023. The cumulative total direct taxes collected for the first five months of 2024 amounted to GH¢22.19 billion, up 31.6% from GH¢16.86 billion during the same period last year.
Income tax, comprising PAYE and self-employed contributions, accounted for 48.8% of the total direct tax collected, while corporate tax contributed 38.4%, and other tax sources added 12.8%.
In terms of labor demand, the number of jobs advertised in selected print and online media remained stable, with a total of 2,968 job adverts in June 2024, slightly down from 2,993 in June 2023. Cumulatively, job adverts for the first half of 2024 increased by 2.4% to 17,278, compared to 16,866 during the same period in 2023.
These trends, as outlined in the Bank of Ghana’s report, reflect positive developments in the country’s labor market and overall economic performance.