23% base pay increment should have come earlier to be factored in 2024 budget - Economist

The Dean of the Cape Coast Business School, Prof John Gatsi, has said the government goofed in the timing of the agreement to increase the base pay for public sector workers on the Single Spine Salary Structure by 23%.

According to him, the agreement should have been reached earlier, to be factored into the 2024 budget which will be presented to parliament on November 15, 2023.

He however added that even though this does not violate the Public Financial Management Act, it would have been the best decision.

“The Public Financial Management Act requires that all issues relating to labour should be agreed upon and factored into the budget before it is read to parliament. So even this one, I want to say that they are very late in the date,” he was quoted by citinewsroom.com.

“That should have been done months or so earlier, so it could be factored into the budget, and read to Parliament,” he added.

On November 14, 2023, the Minister for Employment and Labour Relations, Ignatius Baffour Awuah, announced in Accra on Tuesday that the adjustment would be effective from January 1, 2024, to June 2024.

The base pay would be increased from July 2024 to December 2024, bringing the total increase to 25%.

“We agreed that the minimum wage would be reviewed upwards by 22%, averaging from 14.88 to GH¢18.15…We have concluded that the national base pay will be increased by 23% between 1st February 2024 to 30 June 2024, and subsequently, an additional 2% increment will be added, making it 25% from July to December 2024,” he said.

SSD/NOQ

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