Ghana: Economic crisis, the government increases the national minimum daily salary by 10%.
In the midst of the economic crisis, Ghana is facing 40% inflation, which has been eroded people’s purchasing power. To reverse the trend, the authorities and trade unionists have agreed to a 10% increase in the national minimum a daily salary .
In Ghana, the minimum daily salary will rise from 13.53 cedis to 14.88 cedis. The announcement was made by Ignatius Baffour-Awuah, Minister of Employment and Labour Relations, following negotiations between the government and workers’ unions.
According to a statement from the National Tripartite Committee, an organisation made up of representatives of government, employers and workers, the measure will come into effect from 1 January 2023. It aims to address the economic challenges Ghana has been facing for several months, including the rising cost of living, which has resulted in inflation rising to 40.4%, according to Central Bank figures.
With the increase in debt, depreciation of the cedi and rising inflation, Ghana decided a few months ago to renege on its commitment to stop using the IMF to solve its economic problems. While negotiations are underway to obtain up to $3 billion from the Bretton Woods institution, the population has expressed its dissatisfaction with the management of the crisis by the government of Nana Akufo-Addo, with the opposition even calling for the resignation of the Minister of the Economy, Ken Ofori-Atta.
While this measure represents a step forward, many Ghanaians believe that it will not be enough to bring down the cost of living. According to the NTC, the measure took into account not only the level of inflation, but also the viability of businesses and the desirability of achieving higher levels of employment, as well as the need to quickly restore macroeconomic stability.
“Any establishment, institution or organisation that does not comply with the 2023 national daily minimum wage will be sanctioned in accordance with the law,” the National Tripartite Committee statement said. It should be noted that this measure is in addition to a cost-of-living allowance of 15% in relation to the national minimum daily salary of 2023.
Miss OLY
