Public Sector Workers Salary Negotiations and Minimum Wage for 2025: What to Expect
When will the 2025 salary negotiations commence?
This question has been frequently asked by many, reflecting the anticipation and hope surrounding the upcoming negotiations. Public sector workers in Ghana are eager to see what the future holds for their wages.
Ghana’s Revised National Daily Minimum Wage for 2024
In accordance with Section 113 (1) (a) of the Labour Act, 2003 (Act 651), the National Tripartite Committee increased the national daily minimum wage from GHS 14.88 to GHS 18.15, effective from January 1, 2024. All establishments, institutions, or organizations with daily minimum wages below the new rate had to adjust accordingly. This adjustment also brought about an increase in taxes and utility costs.
Historical Wage Increments
Recent years have seen varying increments in base pay under the Single Spine Salary Structure:
- 2022: 7%
- 2023: 30%
- 2024: 23% for the first half, with an additional
- 2% from July to December 2% Increment of Public Sector Base Pay in July Second Tranche
Despite these increments, workers argue that the value of their pay has diminished due to inflation and rising living costs.
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Upcoming Negotiations for 2025
With the new year approaching, workers are eager to know when the negotiations for 2025 will commence. Some suggest timing the negotiations close to the election period but ensuring they conclude before the elections. The concern is that politicians might delay these negotiations until next year, which would be unfavorable for the workers.
The Role of the National Labour Commission (NLC) and Trade Unions
The National Labour Commission (NLC), Trade Union Congress (TUC), and sister associations have demonstrated their influence in managing the country’s labor issues. Their recent collective intention to strike over the sale of a 60% stake in SSNIT Hotels highlighted their power. Such actions remind us of the significant impact these unions can have when they unite for a common cause. Organised Labour Strike
Current Economic Pressures on Workers
Inflation, utility bills, and high prices of goods and services are eroding workers’ salaries before they even receive them. This financial strain is further exacerbated for those involved in foreign trade with the dollar. Workers are hopeful for an increase in the minimum wage and salary increments for the coming year.
Looking Forward to 2025
As of July 13, 2024, the minimum wage of GHS 18.5 is equivalent to $1.19, given the exchange rate of $15.5000. Workers are advocating for an increase that will significantly impact their lives, enabling them to pay bills, fees, and support their families.
They desire a realistic proposal, with many suggesting an increment of more than 50% of their basic salary, especially after the unions’ previous 70% proposal ended with just a 23% increment.
The 2025 salary negotiations are crucial for public sector workers in Ghana. With the economic pressures they face, a substantial wage increase is not just desirable but necessary.
The role of the unions will be pivotal in these negotiations, and workers are looking to them for a favorable outcome that will improve their quality of life.
source;Gesi360.com