The National Minimum Wage for 2021 has been increased by Ghs 0.71 pesewas by the National Tripartite Committee.
The new wage rate – Ghs 12.53 pesewas – which takes effect Friday, June 4, 2021, represents a 6 percentage points increment from that of 2020’s Ghs 11.82 pesewas.
Additionally, national minimum wage is further expected to increase to Ghs 13.53 pesewas on January 1, 2022.
According to a press release signed by the Minister for Employment and Labour Relations, Ignatius Baffour-Awuah, the increment in the national minimum wage took into account a number of factors which were; the impact of the Covid-19 pandemic on the economy, cost of living, the sustainability of businesses and desirability of attaining high levels of employment.
The Minister, in the press release urged all employers and businesses to adjust their wages in accordance with the new rate, warning that businesses that fail to pay workers the new rate will be duly sanctioned.
Earlier this year, public sectors public sector workers expressed worry about the delay in the upward review of their salaries amid increased and newly introduced taxes, expressing fears over a possible freeze in increase of salaries by government.
An assertion which was later denied by the President of the Republic, Nana Akufo-Addo.
Government, according to the 2021 budget statement, is expected to spend about Ghs 25.7 billion – 5.9 percent of GDP – in wages to public sector workers for this year.
The amount to spent this year is however, 0.6 percent less of GDP (6.5 percent) on what was spent on wages of public workers for last year 2020.
Government expenditure, on the back of the new national minimum wage for this year and next year, is expected to increase further worsening the country’s current fiscal deficit position.
