Ghana Increases National Daily Minimum Wage by 10 Per Cent After Successful Government Change

• The Ghanaian government has increased its national daily minimum wage by 10% effective March 1, 2025
• The government said the new minimum wage will increase to 19.97 cedis per day to tackle rising living standards
• The new minimum wage will be tax-free to ensure workers benefit maximally from the increase without deductions

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Ghanaian government has announced a 10% increase in its National Daily Minimum Wage (NDMW), increasing it to 19.97 cedis, beginning in March 2025.

The government announced the 10% raise in a statement issued by the National Tripartite Committee (NTC) on 2025 national daily minimum wage.

Ghana reveals the reason behind the rise

The communique containing the raise was shared with the Ghana News Agency (GNA) and signed by stakeholders.

The statement revealed that the decision was made in line with Section 113(1)(a) of the Labour Act 2003, following negotiation at the meeting on Thursday, February 20, 2025.

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The NTC said it considered the current economic challenges cost of living, business sustainability, and desirability of attaining a higher employment level in determining the 2025 NDMW.

The raise aims to tackle the rising living costs while ensuring businesses remain viable and employment levels continue to grow.

The new raise will take effect from March 1, 2025, with all establishments, institutions, and organisations required to adjust their wages in line with the new NDMW.

Ghana approves 10% salary raise for private sector

Business Insider reports that the NTC warned that any organisation failing to adhere to the directive will be sanctioned in line with the law.

The Ghanaian government also approved a 10% salary raise for public sector workers under the Single Spine Salary Structure (SSSS) for 2025.

The February 20, 2025 agreement between the government and Organised labour disclosed that the increase will become effective from January 2025 and run until December 2025.

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The NDMW will be tax-free

According to the communique, the 2025 NDMW should be tax-free to ensure workers benefit maximally from the increase without deductions.

The adjustment shows the ongoing efforts to balance economic growth with fair labour practices as the country navigates its economic landscape.

The changes came after the minimum wage was raised to 18.15 cedis in January 2024 under the previous government led by Nana Akufo Ado.

A new report ranks the Ghanaian currency

Legit.ng earlier reported that while Nigerians are crying over the shambolic performance of their local currency, the naira exchanging for N741 per dollar on Monday, October 17, 2022, their West African neighbour, Ghana's cedi, emerged as the worst-performing currency in the world.

Bloomberg reports that Ghana's cedi plummeted to become the world's worst-performing currency in 2022 as investors continue to pump foreign currencies into the country as it inches closer to a deal with the International Monetary Fund (IMF).

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The cedi fell to as much as 3.3 per cent on Monday, October 17, 2023, to exchange for 11.2750 cedis per dollar as of Monday afternoon in the capital, Accra.

Source: Legit.ng