Francis-Xavier Sosu, a member of parliament for Madina, claimed that the 10% increase in the minimum wage was insufficient for employees because the cost of living in Ghana is still high and the local currency keeps falling in value against major trading currencies.
He asserts that the minor increase from GH13.53 to GH14.88 pesewas will not significantly improve the life of government employees in the face of the current financial crisis.
The politician told Citi News that stabilizing the economy was the only way Ghanaians could breathe a sigh of relief over the country’s shaky financial situation.
He said, “When you review minimum wage and inflation and depreciation are still high, fuel prices are rising, these rises will eat off this increase. This means that government must come again by reviewing the wage. That will be great but more importantly, government must take urgent steps to stabilize the economy otherwise, I do not think that this revision of minimum wage will have any real impact on the lives of ordinary workers in Ghana.”
It would be recalled that on Wednesday, November 16, 2022, the National Tripartite Committee (NTC) increased the minimum wage from GH¢13.53pesewas to GH¢14.88pesewas after several stakeholder engagements.
The negotiation was based on Section 113 (1) (a) of the Labour Act, 2003 (Act 651).
Following the marginal increment in the minimum wage, the Minister of Employment and Labour Relations, Ignatius Baffour-Awuah, has said any institution that flouts the 2023 national daily minimum wage shall be dealt with in accordance with the law.
Speaking at a press conference in Accra on Wednesday, November 16, 2022, the minister said, “Any establishment, institution or organization that flout the 2023 national daily minimum wage shall be sanctioned in accordance with the law.”
He noted that the 10% increment in the minimum wage will take effect from January 1, 2023.
Throwing more light on factors that led to the 10% increment, the Employment and Labour Minister said the committee took into consideration the current economic challenges, high cost of living, sustainability of businesses and desirability of attaining higher levels of employment.