Informal Sector Workers Awareness And Participation In The Ssnit Informal Pension Scheme; A Survey In Kumasi Metropolis

Abstract

This study basically examines informal sectors within Kumasi Metropolis awareness and level of participation in the SSNIT informal pension scheme. Thus, the main aim if the study is to determine the level of awareness and patronage of the SSNIT informal pension scheme among traders in Kumasi Metropolis. The study adopted descriptive survey research design. The study’s population comprised of workers in the informal sector trading in goods and services such as second-hand clothing, small kiosks and containers shops, commercial drivers, mechanics, hawkers among others. Stratified sampling technique was employed to select traders from each of the study groups within the study area. In all one hundred and fifty (150) respondents were sampled for the study. The findings reveal that a chunk of the respondents only know of SSNIT scheme for workers in the formal sector or government workers. Also, more than 80 percent of the respondents were not willing to contribute to the SSNIT informal pension scheme. It was found out that, individual’s level of education, position in the household, number of dependents were significant determinants of respondents’ willingness to contribute to the SSNIT informal sectors. The study recommends that SSNIT being the only pension scheme of the government must embark on aggressive campaign to educate Ghanaians especially those in the informal sector on the scheme.