Ghana’s minimum wage has been increased by 10% from Gh₵ 13.53 pesewas to Gh₵14.88 with additional 15% Cost-of-Living Allowance (COLA)
Section 113 (1) (a) of the Labour Act, 2003, Act 651 mandates the National Tripartite Committee to review the daily minimum wage of workers in the country.
This, in an era of astronomical increases in prices of general goods and services, culminating into high cost of living in the country may be a welcoming news by many Ghanaians.
Background of the National Tripartite Committee
The National Tripartite Committee is a regulatory body in Ghana which is responsible for determining the national minimum wage in the country. The committee is composed of five representatives each for government,organized labour and employers.
The committee is chaired by the Minister Youth and Employment. As part of its mandate, the committee embarks on a broader consultation with stakeholders in the labour market in its quest to advise the government on matters bordering around employment and labour and to accomplish the promotion of employment and industrial peace.
Effective Date
The new minimum wage will take effect from January 1, 2023, following a meeting held on Wednesday, November 16, 2022.
Reasons For the Increment
The Committee explained that the move is premised on the harsh economic conditions, high cost of living, business sustainability, rapid restoration of macroeconomic stability and attaining high levels of employment.
An increase in the NDMW by 10% over the 2022 NDMW which translates into a new NDMW of GH₵14.88; and a Cost-of-Living Allowance (COLA) of 15% over the 2023 NDMW, The Committee explained.
The minimum wage is expected to be tax exempted and all institutions or organizations that violate this rule will be legally sanctioned.
Some Ghanaians, though welcome the news, however; describes the increment as insignificant relative to the living conditions of Ghanaians.
