Ghana National Daily Minimum Wage increased

Ghana National Daily Minimum Wage increased

National Daily Minimum Wage (NDMW)

The Ghana National Daily Minimum Wage (NDMW) has been increased by six percent (6%) by the National Tripartite Committee.

In line with Section 113 (1)(a) of the Labour Act, 2003 (Act 651), the National Tripartite Committee (NTC) concluded negotiations on the determination of the NDMW in respect of 2021 and 20221 at its meeting held on Thursday, June 3, 2021, in Accra.

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The committee agreed on a National Daily Minimum Wage as follows:

  • That the 2021 NDMW is GH¢ 12.53 which is six percent (6%) over the 2020 figure of GH¢ 11.82.
  • That the 2022 NDMW is GH¢ 13.53 which is eight percent (8%) over the 2021 figure of GH¢ 12.53.
  • The effective date for the implementation of the 2021 NDMW is Friday, June 4, 2021.
  • The effective date for the implementation of the 2022  NDMW shall be January 1, 2022.

In determining the new rates, the NTC took into account the impact of the Coronavirus (COVID-19) pandemic on the national economy, cost of living, sustainability of the business, and desirability of attaining a high level of employment.

All establishments, institution, or organizations whose NDMW is below the 2021 NDMWshould adjust their wages accordingly with effect from June 4, 2021.

Conclusion

Any establishment, institution, or organization that flouts the new rate shall be sanctioned under the law. Hence, NTC recommends that the NDMW should be tax-exempt