Explainer: Compilation of Ghana’s minimum wage from 2012 to 2021

The wages have over the years seen some increment and changes in the bid to help foster development
The wages have over the years seen some increment and changes in the bid to help foster development

The national daily minimum wage has been increased from GH¢11.82 in 2020 to Gh¢ 12.53 in 2021

• From 2012, statistics show that the country’s minimum wage was not very strong and efforts are being made by the government to develop the economy, hence increasing it from 2017

• The minimum wage was GH¢10.69 in 2019 as compared to the previous year which was GH¢9.68

The National Daily Minimum Wage (NDMW) for 2021 has been increased from a previous rate of GH¢11.82 in 2020, the National Tripartite Committee (NTC) announced on Thursday, June 3, 2021.

The figure represents six per cent over the 2020 figure of GH¢11.82.

It also said the increase was in line with Section 113 (1) (a) of the Labour Act, 2003 (Act 651) with the effective date for the implementation of the 2021 NDMW beginning on June 4, 2021.

This was in a communiqué jointly signed by Mr Ignatius Baffour Awuah, Minister of Employment and Labour Relations, for Government; Mr Daniel Acheampong, President of the Ghana Employers’ Association, for Employers; and Dr Antwi Yaw Baah, the Secretary-General of the Trades Union Congress, Ghana, for Organised Labour.

However, the wages have over the years seen some increment and changes in the bid to help foster development and also revamp the sickening economy of the country.

But, what has the situation been like in the years gone past?

2012

In 2012, the daily minimum wage was GH¢4.48, this was raised to 20.3 Ghana cedi per month from the previous year of 20.16%. This increase is greater than the Consumer Price Index of 2011 which was 8.6%.

2013

In 2013, the minimum wage was GH¢5.24, this was raised by 20.5 Ghana cedi per month from the previous year, 16.94%. This increase is greater than the CPI of 2012 which was 8.8%.

2014

In 2014, the minimum wage stood at GH¢6.00, from the previous amount of GH¢5.24. The increase represents about 14.5 per cent.

2015

In 2015, the minimum wage was GH¢7.00 from the previous amount of GH¢6.00.

From 2016, there was an upward adjustment in the minimum wage as industry players attributed this to the growth of the country’s economy. It also signifies growth in population.

2016

In 2016, the minimum wage was GH¢8.00 from the previous amount of GH¢7.00

2017

In 2017, the minimum wage was GH¢8.80 from the previous amount of GH¢8.00.

2018

Then in 2019, it clinched up to GH¢9.68 from a previous amount of GH¢8.80 from the previous year.

2019

It was GH¢10.69 in 2019 as compared to the previous year which was GH¢9.68.

2020>/b>

In 2020, the minimum wage was GH¢11.82 as compared to the previous year of GH¢10.69.

2021

An amount of Gh¢12.53 in the latest figures was announced by the National Daily Minimum Wage.

From the above statistics, it is clear that the country’s minimum wage from 2012 to 2016 has not been very strong and the government has said efforts are being made to develop the economy, hence increasing it from 2017.

This came about after the NTC concluded negotiations on the determination of the National Daily Minimum Wage (NDMW) in respect of 2021 and 2022 at its meeting held on Thursday, June 3, 2021, in Accra.

The Committee said the effective date for the implementation of the 2022 NDMW shall be January 1, 2022.

It said 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 businesses and desirability of attaining a high level of employment.

The Committee said all establishments, institutions or organisations, whose Daily Minimum Wage was below the 2021 National Daily Minimum Wage should adjust their wages accordingly with effect from 4th June 2021.

It said any establishment, institution or organization that flouted the new rate shall be sanctioned in accordance with the law.

“The NTC recommends that the NDMW should be tax-exempt,” it added and reiterated its commitment to strengthening social partnership, industrial peace and the improvement of incomes and productivity in both the public and private sectors of the economy.

The Committee also fixed the 2022 NDMW at GH¢13.53, which is eight per cent over the 2021 figure of GH¢12.53.

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