We need better payroll system

The government yesterday announced a 16.7 per cent increase in the minimum wage, taking it from GH¢6 to GH¢7.

That followed negotiations at the National Tripartite Committee. 

The committee comprises government representatives, organised labour and the Ghana Employers Association (GEA) and it arrived at the new wage after a week-long negotiation.

Clearly, the move by the government to undertake an early review of the minimum wage stems from the acrimony and tension that characterised negotiations on the base pay structure last year which dragged on for months.

A school of thought has described the increment in the minimum wage as insignificant and quite paltry, but that does not erode the fact that the wage bill places a heavy burden on the national kitty.

The GEA has argued that some of its members will struggle to pay the new wage due to some financial and economic challenges they are facing. One major challenge confronting the government is