What is the Minimum Wage in Ghana 2021?

What is the minimum wage in Ghana 2021? If you are working for a government agency or a private institution in Ghana, there is a need for you to know the minimum amount that you are expected to earn.

It is within your right to get paid and nothing less than the minimum wage in Ghana. In fact, the minimum wage is a law that is meant to guard Ghanaians working in both the government and private sector.

What is a Minimum Wage?

Minimum wages has been defined as “the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by collective agreement or an individual contract.

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To protect workers, the government of Ghana has set up the minimum wage to protect Ghanaians from extortion. By law, all workers are not expected to earn below the stipulated minimum wage. In fact, it is considered a crime for an employer to pay its workers below the minimum wage.

Minimum Wage in Ghana

The National Tripartite Committee (NTC) in line with section 113 (1)(a) of the Labour Act, 2023 (Act 651) effective Friday, June 4, 2021, has increased the 2021 national daily minimum wage from GH₵11.82 to GH₵12.53, thus a 6% increment over the 2020 figure of GH₵11.82.

The Committee in a statement said the 2022 daily minimum wage would be increased to GH₵13.53, thus an 8% increment over the 2021 figure of GH₵12.53.

“The effective date for the implementation of the 2021 national daily minimum wage is June 4, 2021, and the effective date for implementation of the 2022 national daily minimum wage shall be January 1, 2022,” NTC stated in the release.

NTC says the new rate follows the impact of the global coronavirus pandemic on the national economy, cost of living, sustanability of business and desirability of attaining high level of employment.

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All establishments, institutions or organization whose daily minimum wage is below the 2021 national daily minimum wage the Commission has said should adjust their wages accordingly with effect from June 4, 2021.

According to a communique issued by the NTC, any establishments, institutions or organisations that [flout] the new rate shall be sanctioned in accordance with the law”.

Following the implementation of the new minimum wage, they have been an upward review of salaries of workers in Ghana.

Conclusion

The new minimum wage is aimed at improving productivity in both the public and private sectors of the Ghanaian economy. It is also aimed to protect workers against unduly low pay. With this implementation, Ghanaian workers will surely be smiling to the bank at the end of the month.

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