The Ghana National Daily Minimum Wage (NDMW) has been increased by ten percent (10%) 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 Wednesday, November 16, 2022, in Accra.
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Ghana National Daily Minimum Wages 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.
- An increase in the NDMW by 10% over the 2022 NDMW which translates into a new NDMW of GH¢ 14.88; and a Cost-of-Living Allowance (COLA) of 15% over the 2023 NDMW.
Effective Dates for the implementation of NDMW in Ghana
- 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.
- The effective date for the implementation of the 2022 NDMW shall be January 1, 2023.
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 2023 NDMW should adjust their wages accordingly with effect from January 1, 2023.
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.
