The government has approved a 10% increment in the National Daily Minimum Wage and Base Pay for all workers in Ghana for 2025, following the conclusion of the National Tripartite Committee’s (NTC) negotiations.
The National Tripartite Committee, represented by the government, employers, and organized labor and workers associations, commenced negotiations to determine the 2025 minimum wage and Base Bay on February 03, 2025.
Negotiations for the 2025 minimum wage and base pay were supposed to have started and completed by the end of April 2024 under the previous administration, per the Public Financial Management (PFM) Act but failed.
The extreme delay, its accompanying dissatisfaction, and challenges to the 2025 financial year among all stakeholders compelled the new government to act swiftly and commence negotiations.
In the official communique at the onset of the negotiations, the government stated negotiations for base pay (public sector salaries) would follow that of the minimum wage and, urged all stakeholders to expedite the process.
The expeditious conclusion of business now, not only guarantees expected support for worker welfare but for economic stability too. The government can finally make timely and informed adjustments to its 2025 national budget.
Earlier in the week, Presidential Spokesperson, Felix Kwakye Ofosu hinted at the progress of the negotiations in his press release. “Indeed, I have only come from the Ministry of Finance and I’m aware that they are entering into a negotiation to determine the minimum wage and the Base Pay,” he said.
National Daily Minimum Wage (NDMW)
The NTC officially announced the conclusion of discussions and the resulting increase of the National Daily Minimum Wage for the country.
“In line with Section 113 (1) (a) of the Labor Act, 2003 (Act 651), the National Tripartite Committee (NTC) concluded negotiations on the determination of the 2025 National Daily Minimum Wage (NDMW) at its meeting held on Thursday, 20th February 2025 in Accra.
“In determining the 2025 NDMW, the NTC took into account the current economic challenges, Cost of Living, sustainability of businesses and desirability of attaining a high level of employment”
The National Tripartite Committee
A 10% increase in the minimum wage for organized labor was agreed upon. This translates to a new GHS 19.97 minimum wage over last year’s GHS 18.15.
Accordingly, the effective date for implementing the 2025 National Daily Minimum Wage is 1st March, 2025.
This agreement was reached by the Minister of Labor, Jobs, and Employment, Hon. Dr. Abdulai-Rashid Pelpuo for the Government, the President of Ghana Employers Association (GEA), Dr. Emmanuel Adu-Sarkodie for Employers, and the Secretary-General of the Trades Union Congress (TUC), Joshua Ansah for Organized Labor.
Base Pay
In another communique, the NTC announced a 10% increase in the Base Pay on the Single Spine Salary Structure (SSSS) across board from January 2025 to December 2025.
“The Government of Ghana, represented by the Fair Wages and Salaries Commission (FWSC), Ministry of Labor, Jobs, and Employment (MLJE), and Ministry of Finance (MoF) of the one part AND Organized Labor comprising workers’ unions and institutions within the Public Service of Ghana on the other part.
“Whereas the Parties, negotiating as the Public Services Joint Standing Negotiating Committee (PSJSNC), have concluded negotiations for the 2025 Single Spine Salary Structure Base Pay, that the Base Pay on the Single Spine Salary Structure (SSSS) has been increased by 10% across board from January 2025 to December 2025″
The National Tripartite Committee
The signatories to the 10% Base Pay increment were Joshua Ansah, Ing. Benjamin Arthur, Hon. Dr. Abdulai-Rashid Pelpuo, Dr. Isaac Bampoe Addo, and Hon. Dr. Cassiel Ato Baah Forson.
The new minimum wage for Organized Labor and Base Pay for the public sector will last until 2026 when the NTC reviews and negotiates newer increments across board.
It will lead to higher salaries, improved working conditions, and greater financial relief for workers and affect the overall economic outlook as the government’s wage bill will increase.
Additionally, it is meant to combat the growing concerns over cost-of-living increases and labor demands for fair compensation.
As the government begins paying all workers according to the new developments, establishments, institutions, and organizations whose daily minimum wages are below the new rate are expected to adjust accordingly effective 1st March 2025.
Any establishment that fails to comply with the 2025 minimum wage risks facing legal penalties.
The National Tripartite Committee is expected to conclude discussions by the end of April, in line with the Public Financial Management (PFM) Act.
The government has by this action shown its commitment to enhancing the welfare of Ghanaian workers.
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