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Ghana Daily minimum wage increased by 11%, effective 2020

The 2020 National Daily Minimum Wage (NDMW) has gone up 11 percentage point over the 2019 NDMW of GHC 10.65 to GHC11.82, effective from January 1, 2020.

The Ghana Daily minimum wage is the least wage any employer in the country can pay a worker in a day.

Announcing the increase in Accra, the Minister of Employment and Labour Relations, Mr Ignatius Baffour-Awuah, also stated that the NTC had agreed that the new NDMW should be tax-exempt.

He advised all establishments, institutions and organisations to adjust their wages accordingly and warned that any entity which flouted the new rate would be dealt with in accordance with the law.

Base Pay

The Minister also announced that the government and organised labour had agreed that the current base pay on the Single Spine Salary Structure should be increased by 12 per cent across board for the year 2020 at the existing pay point relativity of 1.7 per cent.

He said the base pay, therefore, had been increased from GH¢9.10 per day in 2019 to GH¢10.19 in 2020.That also, he said, takes effect from January 1, 2020. Mr Baffour-Awuah said the parties had also agreed to revise the prevailing rates of allowances expressed in the absolute amounts on the categories two and three allowances to new levels to take effect from January 2020.

He advised government ministries, departments and agencies to take appropriate steps to give effect to the revised categories in accordance with new guidelines to be issued by the Ministry of Finance.

The Minister also announced that the government and organised labour had agreed that the current base pay on the Single Spine Salary Structure should be increased by 12 per cent across board for the year 2020 at the existing pay point relativity of 1.7 per cent. He said the base pay, therefore, had been increased from GH¢9.10 per day in 2019 to GH¢10.19 in 2020.

That also, he said, takes effect from January 1, 2020.Mr Baffour-Awuah said the parties had also agreed to revise the prevailing rates of allowances expressed in the absolute amounts on the categories two and three allowances to new levels to take effect from January 2020.

ALSO READ: ICU calls for a review of Single Spine Salary Structure

He advised government ministries, departments and agencjes to take appropriate steps to give effect to the revised categories in accordance with new guidelines to be issued by the Ministry of Finance.

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Henry Cobblah

Henry Cobblah is a Tech Developer, Entrepreneur, and a Journalist. With over 15 Years of experience in the digital media industry, he writes for over 7 media agencies and shows up for TV and Radio discussions on Technology, Sports and Startup Discussions.

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