Ghana’s Organized Labor has requested that the government boost the base salary for employees of the public sector from the initial 60 percent proposal to 65 percent.
This was brought up during the fourth round of pay negotiations with the government on November 30, 2022.
However, the discussion ended without a resolution since the parties were unable to come to an understanding.
According to Isaac Bampoe Addo, Executive Secretary of the Civil and Local Government Staff Association of Ghana, the increase in taxes suggested in the 2023 Budget Statement and Economic Policy is the reason for the new amount.
“Our demand is reasonable looking at the new tax increments in the 2023 budget,” he said.
“We have realised that some of the decisions made by the government won’t help our members if we take the 60 percent – take for instance, the increment of VAT by 2.5 percent,” he added.
He emphasised that they would not take anything below a 60 percent rise.
However, the government in the meeting proposed an 18 percent increment.
At the previous negotiations, the government offered a 15 percent rise, saying the highly-indebted economy could not sustain a higher wage bill.