NPRA Warns Informal Sector Employers Over Pension Contribution Defaults

The Bono Regional Office of the National Pensions Regulatory Authority (NPRA) has warned employers in the informal sector to ensure the regular payment of their workers’ pension contributions or face legal sanctions.

According to the Authority, employers who fail to remit the mandatory monthly contributions risk severe penalties under the Pensions Act. These include a fine of up to 2,000 penalty units, payment of all outstanding contributions, or a prison term of up to two years. Offenders may also face both penalties.

Assistant Manager in charge of Compliance at the NPRA Bono Regional Office, Enoch Okomfo Okonah, gave the caution in an interview in Sunyani. He said although the Authority prefers to encourage voluntary compliance rather than prosecute defaulters, employers must understand that failure to meet their obligations could attract legal consequences.

Mr Okonah noted that compliance levels in the region have generally been positive. He explained that many employers respond promptly after receiving demand notices from the Authority, which has helped improve adherence to pension contribution requirements.

Meanwhile, another Assistant Manager for Compliance at the regional office, Samuel Baffour-Awuah, highlighted the importance of the Third-Tier Pension Scheme, particularly for workers in the informal sector.

He described the scheme as flexible and accessible, explaining that it was designed to accommodate workers whose incomes may be irregular. The initiative specifically targets people engaged in small-scale and self-employed occupations such as petty traders, market women, hawkers, truck pushers, hairdressers, dressmakers, carpenters, mechanics and welders.

Mr Baffour-Awuah said the scheme allows contributors to make very small deposits, starting from as little as two cedis per month. However, he stressed that the benefits workers receive in the future would largely depend on the amount they contribute over time.

He therefore encouraged individuals working in the informal sector to take advantage of the Third-Tier Pension Scheme, explaining that consistent contributions could provide financial security during retirement and help improve their long-term welfare.