The Executive Director of the Media Foundation for West Africa, Sulemana Braimah, has explained that the 10% increase in the 2023 minimum wage is actually a 50% reduction.
He stated that due to the depreciation of the cedi, the increase is nothing to write home about.
Sulemana detailed that the minimum in 2021 was equivalent to $2.07 and $2.24 in 2022.
From the dollar rate’s perspective, he added that the increase in the minimum wage for 2023 is a 50% depreciation since $2.24 is equivalent to GH¢31.36.
On his Twitter page, he wrote: “June 2021 Minimum Wage GH₵ 12.53 = $2.07 Jan 2022 Minimum wage GH₵ 13.53 = $2.24 Jan 2023 Minimum Wage GH₵ 14.88 = $1.06 Jan 2022 Minimum wage in GHC now = GHC31.36”
“Will you still call the 2023 Minimum wage of GHC 14.88 an increase? In fact, it’s a decrease of over 50%,” he added.
The National Tripartite Committee (NTC) has increased the minimum wage to GH¢ 14.88 from the earlier GH¢13.53.
The increase follows the conclusion of negotiations on the determination of the 2023 National Daily Minimum Wage (NDMW) at its meeting held on Wednesday, November 16, 2022, in Accra.
The determination was based on Section 113 (1) (a) of the Labour Act, 2003 (Act 651).
At the end of the meeting, it was concluded that beginning January 1, 2023, the minimum wage would be pegged at GH¢14.88, an increase in the NDMW by 10% over the 2022 NDMW.
This, they noted, was strongly influenced by the current economic crisis. “In determining the 2023 NDMW, the NTC took into account the current economic challenges, cost of living, sustainability of businesses and desirability of attaining a higher level of employment, as well as the need for rapid restoration of macroeconomic stability,” a statement by the Committee read.
Ghana’s current inflation stands at 40.4% as of October 2022.
Sulemana Braimah, Executive Director of the Media foundation for West Africa