Urgent wage reform needed as Ghanaian workers face rising cost of living, says HR Expert

The Managing Director of L’AINE HR, James Laar, has called on the National Tripartite Committee to reform its approach to wage determination, citing a significant disparity between the country’s minimum wage and the actual cost of living.

Speaking at the 2024 HR Focus Conference held in Accra on Friday October 11, Mr. Laar highlighted the urgent need for wage policies that reflect economic realities.

 Mr Laar who is also a Human Resource expert,  pointed out that while the  minimum wage stands at GHS18.15 as of October 2024, the estimated living wage for a worker supporting a family is about  Ghc 2,986  per month. In contrast, the current national minimum wage equates to only 490.05 per month, stressed.

“There is a considerable gap between what workers earn and what they actually need to cover basic expenses like food, housing, and healthcare,” Mr. Laar said, referencing findings from living wage reports. 

He stressed that this wage disparity leaves many workers struggling to meet essential needs, impacting their overall well-being and productivity.

Shift to living wages

Mr. Laar called for a shift from minimum wages to living wages, arguing that aligning wages with the actual cost of living would improve workers' quality of life. 

“Wages should be reflective of living wage reports and recommendations, not just arbitrary figures,” he said, advocating for a more data-driven approach to wage setting.

He urged the National Tripartite Committee to engage with HR service providers and other key institutions to gather real-time data for wage negotiations.

He also suggested that such collaboration could help create fairer wage structures that support both workers and businesses.

Collaboration for Fair Wages

Mr. Laar emphasised the importance of collaboration among HR professionals, employers, government bodies, and labor unions in addressing wage disparities. “HR professionals have unique insights into employee needs and business realities, and their input is crucial in shaping fair wage systems,” he noted.

He also stressed that fair wages are essential for employee well-being, citing research that shows 75% of employees expect their employers to prioritise well-being initiatives. 

“When employees are paid fairly, they feel valued and are more committed to their roles,” Mr. Laar said, urging HR professionals to lead the charge in advocating for wage reforms.

A call for immediate action

Mr. Laar also urged the National Tripartite Committee to base future wage decisions on comprehensive data gathered through stakeholder collaboration. He called for immediate action, stating, “We need to start reinventing now,” to address wage issues and build a more sustainable and inclusive workforce in Ghana.

He also encouraged HR leaders to prioritise their own well-being, advising them to “lead by example” by maintaining a healthy work-life balance, which would in turn help them better support their teams.

HR Focus’s commitment to capacity building

The Head of HR Focus, Ewurabena Neequaye, urged participants to implement the insights gained from the event. 

She highlighted the importance of capacity building and creating supportive work environments, encouraging attendees to continue engaging in future HR-related events, including the HR Focus Awards 2025.