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Gov’t increases base pay salary of public workers by 30%; scraps 15% COLA

3 years ago
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Gov’t increases base pay salary of public workers by 30%; scraps 15% COLA

Base pay salaries of public sector workers have been increased by 30% by the Government.

The agreed increment in base pay salaries of public workers between Organised Labour and Government, is down from an earlier 65% base pay salary increment proposed by Organised Labour.

The increment, the Minister for Employment and Labour Relations, Ignatius Baffour-Awuah, takes effect from January 2023.

With the increment in base pay salaries, public sectors are no longer entitled to the 15% Cost Of Living Allowance (COLA) granted to them by the government.

Speaking at a joint press briefing, Secretary General of the Trade Union Congress, Dr Yaw Baah, applauded the government for at least meeting the demands of labour halfway, further asserting that the 30% increment was a good starting point for further negotiations next year.

With a depleted fiscal space and in dire need for funds to finance its expenditure for this year, the 30% increment in base pay salary will add to government’s expenditure woes.

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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 formed 15% of their basic salary.

Tags: COLAGov’t increases base pay salary of public workers by 30%; scraps 15% COLA
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