The Director of the Institute of Economic Affairs, Dr. John Kwakye has described as “unconscionable” the pegging of the minimum wage at GH¢14.88 equivalent to $1 dollar a day.
The dollar is currently selling at GH¢14.95 as of today, November 17, 2022.
His comments come after the National Tripartite Committee (NTC) increased the minimum wage to GH¢ 14.88 from the earlier GH¢13.53.
Dr. Kwakye in a Twitter post on November 17, 2022, wrote: “It's unconscionable for Govt to pay anybody GHc14.88 (equivalent to US$1.00) a day. It shows the failure of economic management.”
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. This has depleted the purchasing power of most Ghanaians as they have de-cried the stagnant nature of salaries.
It's unconscionable for Govt to pay anybody GHc14.88 (equivalent to US$1.00) a day. It's shows failure of economic management.
Cedi notes