Ghana Increases National Daily Minimum Wage by 10% to GH₵19.97

Ghana’s National Daily Minimum Wage (NDMW) has been increased by 10%, rising from GH₵18.15 to GH₵19.97. The announcement was made by the National Tripartite Committee (NTC) in compliance with Section 113 (1) (a) of the Labour Act, 2003 (Act 651). This increment is part of ongoing efforts to mitigate the rising cost of living and ensure sustainable employment in the country.

The decision was communicated through an official statement issued by the NTC on the 2025 NDMW, which was shared with the Ghana News Agency (GNA). The statement was signed by key stakeholders and confirmed that the wage adjustment followed negotiations held on February 20, 2025, in Accra.

Factors Behind the Increase

According to the NTC, the 10% increment was determined after considering Ghana’s current economic challenges, the cost of living, and the need to sustain businesses while maintaining job growth.

“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 strike a balance between ensuring workers receive fair wages and preventing undue strain on businesses, particularly small and medium-sized enterprises (SMEs) that drive Ghana’s economy.

Implementation and Compliance

The new minimum wage is set to take effect on March 1, 2025. Employers across all sectors—both private and public—are required to comply with the new wage structure. Organizations that fail to meet the new minimum wage requirement will face penalties as prescribed by law.

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

Additionally, the Government of Ghana has approved a 10% salary increase for public sector workers under the Single Spine Salary Structure (SSSS). This wage adjustment, effective from January 1, 2025, will last throughout the fiscal year. The agreement was signed 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.

Tax Exemption Proposal

In a move to maximize the benefits of the new wage increase, the NTC has recommended that the 2025 NDMW be tax-exempt. If implemented, this would ensure that workers retain the full value of their increased wages without deductions.

Economic Implications

This adjustment to the minimum wage reflects the government’s commitment to balancing economic growth with fair labor conditions. The decision comes at a time when Ghana is facing economic pressures, including inflation, rising commodity prices, and financial constraints in critical sectors such as energy and healthcare.

The last minimum wage increase occurred on January 1, 2024, when the wage was raised to GH₵18.15 under the Nana Akufo-Addo administration. The current increment continues this trajectory of improving workers’ welfare in response to economic realities.

With the rising cost of living affecting many Ghanaians, this wage increase is expected to provide some financial relief to workers while ensuring that businesses remain competitive and employment levels continue to grow.