2 months pay of COLA costs Gov’t GHS 485m
Payments made for the Cost Of Living Allowance (COLA) by government to public sector workers for the month of July and August, cost government some GHS 485m.
This is according to a statement issued by the Controller and Accountant General on Monday, August 29, 2022.
The COLA paid to public sector workers form 15% of their basic salary.
With an almost depleted fiscal space and in dire need for funds to finance its expenditure for this year, the GHS 485m COLA paid by government will add to its expenditure woes.
During this year’s May Day celebration, the Trades Union Congress (TUC), called on government to give public sector workers a 20% cost of living allowance (COLA).
According to the TUC, this will help better the lot of public sector workers across the country owing to what they said, is the prevailing hardship in the country.
Subsequently, some public sector workers threatened to withdrawal of their services if government did not pay the COLA.
The strike action was averted following a meeting of the tripartite committee which agreed on 15% COLA effective July 1, 2022.