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Minimum wage goes up by 10%; now GHC10.65

July 27, 2018, 11:30 a.m.

The daily minimum wage has been raised by 10 per cent, reaching GH?10.65 from GH?9.68.

The decision was arrived at after deliberations of the National Tripartite Committee (NTC) in Accra on Thursday, July 26.

A communique issued by the NTC has, therefore, directed all institutions whose Daily Minimum Wage is below the new Daily Minimum Wage to adjust its wages upward from 1st January 2019.

The new wage takes effect from January 1, 2019.
"Any establishments, institutions or organisations that [flout] the new rate shall be sanctioned in accordance with the law", the communique stated.

What is the minimum wage?

Minimum wages, according to the International Labour Organisation (ILO), is “the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by collective agreement or an individual contract.”

The purpose of minimum wages is to protect workers against unduly low pay.

They help ensure a just and equitable share of the fruits of progress to all, and a minimum living wage to all who are employed and in need of such protection.

The NTC, which sets the minimum wage in Ghana, has directed that new National Daily Minimum Wage should be tax exempt.