Number: Ratios and Proportion · JHS3 Mathematics

Lesson notes

Learning Objectives

Indicator: B9.1.4.1.3 - Use knowledge of rates and proportional reasoning to solve problems involving SSNIT benefits and contributions.

By the end of the lesson, learners can:

State the SSNIT contribution rates for employers and employees under both Act 766 and PNDC Law 247.
Calculate the employer’s contribution, employee’s contribution, and total monthly SSNIT contribution for a given basic salary under each law.
Calculate a worker’s basic monthly salary when given the employee’s or employer’s contribution under either law.
Use pension rights tables to calculate annual and monthly pensions for retired workers under both Act 766 and PNDCL 247.
Apply proportional reasoning to solve real-life problems involving SSNIT invalidity benefits and survivor’s benefits.

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Curriculum details

Strand: Number (Strand 1)
Sub-strand: Number: Ratios and Proportion (1.4)
Content standard: B9.1.4.1 - Apply the understanding of ratio, rate and proportions to solve problems that involve rates, ratios, and proportional reasoning and use it to solve real- world mathematical problems.
Indicator: B9.1.4.1.3 - Use knowledge of rates and proportional reasoning to solve problems involving SSNIT benefits and contributions.
Suggested placement: Term 2, Week 2 (Week 14 of the year)
Our suggestion, laid out in curriculum order across three terms of twelve weeks. NaCCA does not fix the week, so follow your school's scheme of learning.
Curriculum reference: Mathematics, Common Core Programme (JHS1-JHS3), 2023, p. 176
Transcribed from the official NaCCA publication. Check this page against the source.

Exemplars (from the NaCCA curriculum)

E.g.1 Describe the obligations of the employer/employee and the contribution rates. Act 766 PNDC Law 247
Employer 13.0% of basic salary 12.5 of basic salary Worker 5.5% of basic salary 5.0% of basic salary
Total 18.5% of basic salary 17.5% of basic salary
E.g.2 Calculate employee/employer contributions to SSNIT under Act 766. A worker's basic monthly salary is GH₵3,256.50.
b. Calculate the SSNIT contributions under Act 766;
i) by the employer
ii) by the employee
What is the total SSNIT contributions at the end of every month?
E.g.3 Calculate employee/employer contributions to SSNIT under PNDCL 247. Mr Bediako's monthly SSNIT contribution under PNDCL 247 is GH₵440.54. How much does his employer contribute to SSNIT on his salary? Hence, calculate his basic salary per month.
E.g.4 Calculate employee benefits from SSNIT under Act 766. The table shows the pension rights for SSNIT contributors under Act 766

Pension-rights table pairs years of contributions 15, 16, 17, 18, 30, 31, 32, and 35 with percentages 37.500,... — A pension-rights table pairs years of contributions 15, 16, 17, 18, 30, 31, 32, and 35 with percentages 37.500, 38.625, 39.750, 40.875, 54.375, 55.500, 56.625, and 60.000, with ellipses for omitted years. The wide black-and-white table is arranged with horizontal divisions, vertical divisions.

Years of … …
15 16 17 18 30 31 32 35
contributions Pension 37.500 38.625 39.750 40.875 … 54.375 55.500 56.625 … 60.000
Rights (%)
a. Mr Addai retired at age 60 last year after working and contributing for 20years. If the average of his best salary for 3 years (36 months) over the 20-year period was GH₵15,000.00, calculate his full pension under the National Pension Act 2008, (Act 766). Calculation for full pension Qualifying age = 60years Average best 3years' salary = GH₵15,000 Pension right for 20years = 43.13% (refer to the table on Pension Rights above) Annual pension to Mr. Addai = 43.13/100 × 15,000 = GH₵6,469.50
Monthly pension to Mr Addai = GH₵6,469.5 12
=GH₵ 539.13
b. A worker contributed for 7 1 years before being rendered incapacitated. If the best 2
salary for over the 3-year (36 months) period was GH₵ 8,450.40, calculate the invalidity benefit for the worker.
c. Mr Mensah's total SSNIT contribution stood at GH₵ 112,426.29 at the time of his demise. Calculate his survivor's benefit if the current interest rate is 15%.
E.g.5 Calculate employee benefits from SSNIT under PNDCL 247. The table shows the pension rights for SSNIT contributors under PNDCL 247. Years of 20 21 22 23 24 25 26 27 28 29 30 … 40 & contributio abov ns e Pension 50. 51. 53. 54. 56. 57. 59. 60. 62. 63. 65. 80.0 Rights (%) 0 5 0 5 0 5 0 5 0 5 0
Mr Bema, a history teacher at Academicals Senior High School, retired in 2009 after 25 years of service. Throughout this 25-year period he had been an active contributor to the SSNIT Pension Scheme. As the student who has learnt about social security, you are to help Mr Bema to calculate his annual pension using his best three years' salary of GH₵19,500. Calculation for full pension Qualifying age = 60years Average best 3years' salary = GH₵19,500 Pension right for 25years = 57.5% (refer to the table on Pension Rights above) Annual pension to Mr. Bema = 57.5 × GH₵19,500 = GH₵11,212.5 = FG₵934. 38 100 12