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Saturday, February 22, 2025

Ghana increases national daily minimum wage by 10%

This decision was communicated in an official statement issued by the National Tripartite Committee (NTC) on the 2025 NDMW. The communique was shared with the Ghana News Agency (GNA) and signed by key stakeholders.

The NTC’s statement clarified that the decision was made in accordance with Section 113 (1) (a) of the Labour Act, 2003 (Act 651), following negotiations at a meeting held on Thursday, 20th February 2025, in Accra.

“In determining the 2025 NDMW, the NTC considered the current economic challenges, cost of living, sustainability of businesses, and the desirability of attaining a higher level of employment,” the communique stated.

The increase aims to address the rising cost of living while ensuring businesses remain viable and employment levels continue to grow.

The 2025 NDMW is set to take effect from 1st March 2025, with all establishments, institutions, and organizations required to adjust their wages accordingly.

“All establishments, institutions, or organizations whose daily minimum wages are below the new rate should adjust accordingly effective 1st March 2025,” the statement directed.

Furthermore, the NTC warned that any organization failing to comply with the new minimum wage will face sanctions in accordance with the law.

The Government of Ghana has also approved a 10% salary increase for public sector workers under the Single Spine Salary Structure (SSSS) for the 2025 fiscal year.

According to the agreement signed on February 20, 2025, between the government—represented by the Fair Wages and Salaries Commission (FWSC), Ministry of Labour, Jobs and Employment (MLJE), and the Ministry of Finance (MoF)—and Organized Labour, the increment will be effective from January 1, 2025, and will run until December 2025.

The communique also highlighted a recommendation from the NTC that the 2025 NDMW should be tax-exempt, ensuring that workers benefit fully from the increase without deductions.

This wage adjustment reflects ongoing efforts to balance economic growth with fair labour conditions, as Ghana navigates its evolving economic landscape.

This most recent change comes after the minimum wage was increased to GHS18.15 per day on January 1, 2024, the previous year, under the Nana Adoo administration.

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