The government has increased base pay for the public sector by 30% for the fiscal year 2023 as a result of multiple talks with Organized Labor.
Beginning on January 1, 2023, the increase will be in effect.
This comes after a meeting with organized labor on January 12 following eleven rounds of fruitless negotiations.
“The base pay has been increased by 30% for the 2023 financial year…As I said this brings to an end the 2022 COLA of 15% of base pay salary,” Employment Minister, Ignatius Baffour-Awuah announced shortly after the decision was taken.
Organized Labor initially requested a 60% percent increase and held firm to that demand despite numerous interactions with the government during the base wage discussions.
The public sector employees chose to lower their initial 60% demand to 58% after rejecting the government’s initial 18% offer.
Organized Labor did, however, agree to a 30% rise in the base wage after their meeting with the administration on Thursday, which also included Finance Minister Ken Ofori-Atta, who had skipped all previous meetings.
Dr. Yaw Baah, the General Secretary of the Trades Union Congress (TUC), thanked the government for this fresh step.
“The Leadership of organized Labour would like to express our sincere thanks to government for granting 30% increase in base pay for 2023 for public sector workers. We are happy that it has ended peacefully today.
“The 30% even though it is not what we want, it will create that opportunity for us to speak one language to work together.”
Executive Secretary of Civil and Local Government Staff Association, Ghana (CLOGSAG), Dr. Isaac Bampoe-Addo told the government delegation that, “we want to assure government that we will collaborate with them and come up with ideas to improve the revenue generation. We know the next time we meet for base pay negotiations, it will be a better story.”
The Finance Minister at the meeting noted that the increment will put a strain on the country’s finances.
“As I mentioned this will take a toll on the budget, but we are confident that we would enhance productivity and the commitment that we both have given to each other to make sure that there is peace in this country as we look at pension and labour issues.”
By this decision, the government said the 15% Cost of Living Allowance (COLA) for public sector workers has ceased.