Senyo Adjaben, a Labour consultant, has disclosed that government should give enough attention to living wage as compared to the minimum wage in a bid to guide business owners and employees considering the impact of COVID-19 on the economy.
To ensure the sustenance of the livelihoods of Ghanaians, Mr. Adjaben explained that, it has become imperative as there has been strong advocacy ongoing by the labour union on the development. He further explained that, consideration of living wages is comparatively more practical than minimum wages.
“The minimum wage is the barest minimum that a country uses to determine the standard of living in the country, but I know that for some time now the labour union has been advocating for a living wage which normally takes into consideration the specific economic conditions in the country and the barest minimum amount of money people need to survive as workers. So, basic things like transportation, clothing and housing are used as factors to determine the living wage .that normally is a lot more realistic than minimum wage which is really the barest minimum”.
Additionally, the Labour consultant urged Ghanaian workers to be audacious in their demands and collaboratively vie for their living wages.
“I think that we should all be advocating for a living wage that also will be a kind of guide to employers rather than just limiting them to minimum wage because at the end of the day, inflation will take most of it away and the employee will lose the actual value of the implement that they gained especially from the minimum wage”.
Currently, the country’s current minimum wage is 11 cedis 28 pesewas. The 2020 National Daily Minimum Wage (NDMW) shot up from the 2019 NDMW of GHC 10.65. This is in pursuance to the Labour Act, 2003 (Act 651) section 113 (1) (a) and the Public Financial Management Act, 2016 (Act 921).
Mr. Ignatius Baffour Awuah, the Minister of Employment and Labour Relations then, in 2019, announced and directed all establishments, institutions or organizations, whose Daily Minimum Wage was below the new NDMW to adjust their wages accordingly, starting from the implementation date.
He said, the Public Services Joint Standing Negotiating Committee (PSJSNC) comprising Government, represented by the Fair Wages and Salaries Commission, Ministry of Employment and Labour Relations, Ministry of Finance on one part, and Organised Labour, Associations and Institutions on the other part, concluded negotiations and reached agreement on the Base Pay for 2020 per day.
Mr. Baffour Awuah noted the PSJSNC agreed that the then 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.
Research, according to him revealed that, majority of workers spent their income on rent-related expenditures and Government and its Social partners are embarking on affordable housing project to take off that burden.
