Institutions that do not implement the new daily minimum wage will be penalized, according to the labor minister

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Ignatius Baffour-Awuah, the Minister of Employment and Labor Relations, has given notice that any institutions, businesses, or organizations that refuse to apply the new daily minimum wage may face legal repercussions.

At a news conference on November 16 in Accra, Ghana, Mr. Baffour-Awuah stated, “Any enterprise, institution, or organization that flouts the 2023 national daily minimum wage shall be sanctioned in accordance with the law.”

Ths was after he announced that the national daily minimum wage has been increased from GH¢13.53 in 2022 to GH¢14.88 pesewas for the year 2023.

Organized Labour, the Ghana Employers Association and government have been meeting on the determination of the national daily minimum wage for 2023 since Monday November 14.

This afternoon, the Minister said at a press conference in Accra on Wednesday November 16 that, the national tripartite committee concluded the negotiations and “we think this is the best time to communicate to Ghanaians on the outcome of the negotiations.”

The committee, he said, took into account the current economic challenges, cost of living, sustainability of businesses and desirability of attaining higher levels of employment.

“The committee concluded on the need to increase the national daily minimum wage by 10 per cent over the 2022 national daily minimum wage which translates into new national daily minimum wage of GH¢14.88 pesewas and a cost of living allowance of 15 per cent over the 2023 national daily minimum wage.

“The effective date for the implementation of the 2023 national daily minimum wage shall be 1st January 2023.

“All establishments, institutions, organizations whose daily minimum wages are below the new rate should adjust accordingly effective 1st January 2023,” he said.

 

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