Daily minimum wage increased by 71 pesewas to GH₵12.53

The 2021 National Daily Minimum Wage has been increased by six per cent to GH₵12.53 effective June 4, 2021.

The new figure represents a 71 pesewas increase on the GH₵11.82 that took effect on January 1, 2020.

The International Labour Organization defines the minimum wage as “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”.

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A communique by the National Tripartite Committee (NTC) on the 2021 and 2022 NDMW said the new wage was in line with the Labour Act, 2003 (Act 651) section 113 (1) (a) and after negotiations between members of the committee.

The negotiations also set the 2022 National Daily Minimum Wage which is to take effect on January 1, 2022, at GHc13.53.

The communique was jointly signed by the Minister of Employment and Labour Relations, Mr Ignatius Baffour Awuah, the President of the Ghana Employers' Association, Mr Daniel Acheampong and the Secretary-General of the Trades Union Congress, Dr Anthony Yaw Baah.

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The Committee also recommended that the NDMW should be tax-exempt.

"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 high level of employment," the communique reads.

"All establishments, institutions or organisations whose Daily Minimum Wage is below the 2021 National Daily Minimum Wage should adjust their wages accordingly with effect from 4th June, 2021.

"Any establishment, institution or organisation that flouts the new rate shall be sanctioned in accordance with the law. The NTC recommends that the NDMW should be tax exempt".