The Government of Ghana has announced a 10% increase in the National Daily Minimum Wage (NDMW), raising it to GH¢19.97, effective March 1, 2025. This decision was made by the National Tripartite Committee (NTC) in accordance with Section 113 (1) (a) of the Labour Act, 2003 (Act 651).

The NTC's statement clarified that the decision was made after considering the current economic challenges, cost of living, sustainability of businesses, and the desirability of attaining a higher level of employment. The increase aims to address the rising cost of living while ensuring businesses remain viable and employment levels continue to grow.

In addition to the NDMW increase, public sector workers under the Single Spine Salary Structure (SSSS) will also receive a 10% salary increase for the 2025 fiscal year. This increment will be effective from January 1, 2025, and will run until December 2025, as agreed upon by the government and Organized Labour.

The implementation of the new minimum wage will be mandatory for all establishments, institutions, and organizations, which must adjust their wages accordingly. The NTC warned that any organization failing to comply with the new minimum wage will face sanctions in accordance with the law.

The NTC also recommended that the 2025 NDMW should be tax-exempt, ensuring that workers benefit fully from the increase without deductions. This wage adjustment reflects ongoing efforts to balance economic growth with fair labour conditions, as Ghana navigates its evolving economic landscape.

This most recent change comes after the minimum wage was increased to GHS18.15 per day on January 1, 2024, the previous year, under the Nana Adoo administration. The Ghanaian government's move to increase the national daily minimum wage is a significant step towards addressing the rising cost of living and ensuring a higher level of employment in the country.

The implications of this decision are far-reaching, with potential benefits for millions of workers in Ghana. As the country continues to navigate its economic challenges, this wage increase may have a positive impact on the overall economy and contribute to a more equitable distribution of wealth.

In conclusion, the Ghanaian government's decision to increase the national daily minimum wage by 10% is a significant development that addresses the rising cost of living and ensures business sustainability. As the country moves forward, it will be important to monitor the impact of this decision on the economy and the lives of Ghanaian workers.