The government has approved a 10% wage hike for employees in the public sector.
This move follows successful negotiations between the Labour Union and the President, John Dramani Mahama, who personally engaged with the union to secure their support for the adjustment.
This pay rise marks the second adjustment in less than a year, with the last one occurring in 2024 when the government approved a 23% increase aimed at addressing rising cost of living.
Minister of Labour, Jobs and Employment, Rashid Pelpuo in his announcement said the increment takes effect on March 1, 2025
On February 4, 2025, the National Tripartite Committee (NTC), comprising representatives from the government, employers, and organised labour/associations, began negotiations to determine the minimum wage for the year 2025.
These negotiations are critical, as the minimum wage serves as the baseline for wages across various sectors, particularly impacting low-income workers in both the formal and informal sectors of the economy.
The agreed minimum wage will also influence future deliberations on base pay for public sector employees, a process scheduled to follow the completion of the current minimum wage discussions.
Despite the commencement of negotiations, there were concerns that both the minimum wage and base pay discussions are significantly behind schedule.
According to the Public Financial Management (PFM) Act, these deliberations were expected to be completed by April 2024 to allow sufficient time for their inclusion in the 2025 national budget planning process.
The minimum wage is a critical tool for protecting the most vulnerable workers in the economy. It sets the standard for fair compensation and is often adjusted to account for inflation, cost of living, and economic growth.
For many workers, the minimum wage represents their primary means of supporting themselves and their families.
