The National Daily Minimum Wage has been increased by the National Tripartite Committee (NTC) to ¢12.53, which is a 6% increment on the 2020 figure of ¢11.82.
This followed conclusion of negotiations on the determination of the National Daily Minimum Wage in respect of 2021 and 2022 at its meeting held Thursday, June 3 in Accra.
The determination of the national minimum wage is in accordance with Section 113 (1) (a) of the Labour Act, 2003 (Act 651).
At the end of the meeting, it was also concluded that for the year 2022, National Daily Minimum Wage will be pegged at ¢13.53, an 8% increment on the 2021 figure.
According to a press statement announcing the new rates, the Committee indicated that the Covid-19 pandemic and its attendant economic hardships strongly influenced the percentage increases of the National Daily Minimum Wage rate.
“In determining the new rates, the NTC took into account the impact of the Covid-19 pandemic on the national economy, cost of living, sustainability of businesses and the desirability of attaining high level of employment,” it stated.
The National Daily Minimum Wage rate for 2021 is to come into effect starting June 4, 2021, whereas 2022 comes into effect, January 1, 2022.
Thus, the Committee directed all organisations whose Daily Minimum Wage is below the 2021 National Daily Minimum Wage to adjust their rates accordingly with effect from June 4.
“Any establishment, institution, or organization that flouts the new rate shall be sanctioned in accordance with the law,” it warned.
It further recommended that the National Daily Minimum Wage be tax exempt.
“The NTC wishes to reiterate its commitment to strengthening social partnership, industrial peace, and the improvement of incomes and productivity in both public and private sectors of the economy,” the statement concluded.