National Pensions Regulatory Authority Cracks Down on Employers Over Tier 2 Pension Defaults
NPRA warns of prosecutions and penalties as non-compliant firms risk workers’ retirement security under Act 766
The National Pensions Regulatory Authority (NPRA) has strongly warned employers across Ghana to quickly register and contribute Tier 2 pension funds for their employees, or face legal action.
During a media event in Accra on April 9, 2026, the Authority emphasized that failing to meet the requirements of the National Pensions Act 2008 (Act 766) is a punishable offense that endangers workers’ retirement security.
The NPRA’s Deputy CEO, Victor Azuma Mejida, representing the CEO, stated that some employers have not registered Tier 2 occupational pension schemes, while others deduct contributions from employees’ salaries but fail to remit them to trustees.
“Such violations of workers’ rights must be stopped. Employers should cease these practices or face prosecution,” the Authority warned.
The regulator highlighted the seriousness of non-compliance, warning that missing pension payments could severely impact employees’ future income security. “Defaulting on these contributions spells disaster for the worker,” the statement read.
As part of stricter enforcement, NPRA reported prosecuting 11 non-compliant employers in 2025 and recovering over GH¢27 million, about 30 percent of an estimated GH¢91 million in overdue contributions.
The Authority has dispatched compliance officers nationwide to review company records, issue demand notices, and take legal action if needed. Employers who default are also liable to a 3 percent monthly compounded penalty on unpaid contributions.
To enhance enforcement, NPRA has trained 44 prosecutors across the country and increased inspections in line with its legal duties. “It is an offense to default on pension contributions,” the Authority warned, promising that penalties will be enforced strictly.
According to Section 3 of Act 766, all employers, regardless of size, must register workers in a Tier 2 occupational pension scheme and ensure timely contributions. The Authority stressed that failure to register a scheme itself is a legal violation.
NPRA urges the media and the public to support its efforts by exposing defaulting employers, emphasizing the need for cooperation to protect Ghanaian workers’ pension rights.
The Authority reaffirmed that pensions are vital for financial security and dignity, reaffirming its dedication to ensuring compliance and safeguarding retirement income nationwide.
