Effective January 1,2020 the National Daily Minimum Wage (NDMW) will go up by 11 percentage point over the 2019 NDMW of 10.65 to 11.82cedis.
This is in accordance to the Labour Act, 2003 (Act 651) section 113 (1) (a) and the Public Financial Management Act, 2016 (Act 921).
Minister for Employment and Labour Relations, Ignatius Baffour Awuah, who announced this at a media briefing in Accra, directed all establishments, institutions or organisations, whose Daily Minimum Wage is below the new NDMW to adjust their wages accordingly starting from the implementation date.
He said: “Any establishment, institution or organisation that flouts the new rate shall be sanctioned in accordance with the law”.
He said the agreement was reached at the National Tripartite Committee (NTC) meeting on Monday, August 26, where they concluded negotiations and the NTC recommended that the minimum wage should be tax-exempt.
He indicated that the Public Services Joint Standing Negotiating Committee (PSJSNC) comprising Government, represented by the Fair Wages and Salaries Commission, Ministry of Employment and Labour Relations, Ministry of Finance on one part, and Organised Labour, Associations and Institutions on the other part, concluded negotiations and reached agreement on the Base Pay for 2020 per day.
Mr Baffour Awuah said the PSJSNC agreed that the current Base Pay on the Single Spine Salary Structure should be increased by 12 per cent across board for the year 2020 at the existing pay point relativity of 1.7 per cent, effective January 1, 2020. The Base Pay is therefore increased from GHC9.10 per day in 2019 to GHC10.19 per day in 2020.
He said the Social Partners had also agreed to revise the prevailing rates of allowances expressed in the absolute amounts on the categories 2 and 3 allowances to new levels to also take effect from January 1, 2020. Mr. Baffour Awuah reiterated government’s commitment to the improvement of incomes and productivity in both the public and private sectors of the Ghanaian economy,” .
Secretary General of the TUC,Anthony Yaw Baah, Secretary-General, Trades Union Congress (TUC), Ghana, representing Organised Labour, said the agreement reached was in an indication that their social partnership is deepening and was grateful to all partners.