New minimum wage low to cushion workers, stabilize economy - Sosu to government

Member of Parliament for Madina, Francis-Xavier Sosu, has said the 10% increment in minimum wage was not enough for workers as the cost of living in Ghana remains high, and the local currency keeps depreciating against major trading currencies.

According to him, the marginal increment from GH¢13.53pesewas to GH¢14.88pesewas will not have any positive impact on the lives of government workers amidst the economic crisis.

Speaking in an interview with Citi News, the lawmaker said the only way Ghanaians can heave a sigh of relief in this wobbling state of the economy was to stabilize it.

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.

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