Labour Analyst, Austin Gamey, says the National Tripartite Committee may have considered some important factors before arriving at the latest minimum wage although the increase may appear insignificant.
The government through the National Tripartite Committee has increased the daily minimum wage by 6% from GHS11.82 to GHS12.53.
This is in pursuance of the Labour Act, 2003 (Act 651) section 113 (1) (a).
According to the Committee, it considered the impact of the COVID-19 pandemic on the economy.
“In determining the new rates, the NTC took into account the impact of the Coronavirus (COVID-19) pandemic on the national economy, cost of living, sustainability of businesses, and desirability of attaining a high level of employment,” a communiqué following the negotiations stated.
The move is an attempt by the government to raise the wage floor and improve the conditions of the most vulnerable Ghanaian wageworkers.
Speaking to Citi News, Austin Gamey said it would also help the government meet its inflation targets, regardless of how low the increase might seem.
“The increment means that the committee has looked at the projected inflation and the outturn of the actual inflation, and has observed that this is the best possible way that they could come to prevent any further fuelling of inflation. The increment may not be enough in the sight of people, but the realities are that this is the way minimum wages are to be fixed.”