Pay tier-2 pension contributions of workers or face prosecution -NPRA to employers

In a decisive move to protect workers’ retirement security, the National Pensions Regulatory Authority (NPRA) has issued a strong warning to employers across Ghana: comply with Tier 2 pension contribution requirements or face prosecution. The directive underscores growing concerns over employer non-compliance and its impact on workers’ futures. At a media engagement in Accra on April 9, 2026, the Authority made its stance clear. Employers are expected to register their employees under the Tier 2 occupational pension scheme and ensure contributions are properly remitted. Failure to do so, the Authority emphasized, is not just negligent—it is illegal.

A system under strain
The message, delivered by Deputy CEO Victor Azuma Mejida on behalf of the Chief Executive Officer, revealed troubling trends. Some employers have yet to register pension schemes altogether, while others deduct contributions from employees’ salaries but fail to pass those funds on to trustees.

“These violations of workers’ rights must not be condoned,” the Authority stated firmly. “Employers must desist from such acts or face prosecution.”

The consequences of such actions extend beyond legal penalties—they jeopardize the financial stability of workers who rely on pensions for their future livelihood.

The cost of non-compliance
The Authority did not mince words when describing the stakes. Failure to meet pension obligations, it warned, spells disaster for employees.

“Failure or refusal to pay these contributions means doom for the worker,” the statement emphasized, highlighting the human cost behind administrative negligence.

Recent enforcement efforts have already yielded results. In 2025, the NPRA prosecuted 11 non-compliant employers, recovering over GH¢27 million. This figure represents nearly a third of the estimated GH¢91 million in outstanding contributions—an indication of the scale of the issue.

Strengthening enforcement measures
To combat widespread defaulting, the NPRA has intensified its compliance strategy. Compliance officers have been deployed nationwide to inspect company records, issue demand notices, and initiate legal action where necessary.
Employers who fail to meet their obligations are subject to a 3 percent monthly compounding penalty on unpaid contributions—a financial deterrent designed to encourage prompt compliance. Additionally the Authority has trained 44 prosecutors to handle cases related to pension violations, signaling a more aggressive approach to enforcement. “It is an offence… to default in payment of pension contributions of your staff,” the Authority reiterated.

Legal obligations and employer responsibility
Under Section 3 of the National Pensions Act 2008 (Act 766), all employers—regardless of size—are required to enroll their employees in a Tier 2 occupational pension scheme. The law also mandates timely payment of contributions.
The NPRA stressed that failure to even register a scheme constitutes a breach of the law, not just delayed or missing payments.

A call for collective action
Beyond enforcement, the Authority is calling on the public and the media to play an active role in ensuring compliance. By exposing defaulting employers and raising awareness, stakeholders can contribute to safeguarding workers’ pension rights.
Securing the Future of Ghanaian Workers The NPRA concluded its warning with a reaffirmation of its mission: to protect the financial security and dignity of Ghanaian workers. Pensions, it emphasized, are not optional—they are a fundamental pillar of long-term stability.

As enforcement intensifies, employers are left with a clear choice: comply with the law or face the consequences.