Base Pay Negotiations: Organized Labour accepts gov’t’s 4%, 7% increment with arrears effective January 2021

GOVERNMENT wage LABOUR teacher 2023

Organized Labour during its final negotiation with government, has accepted government’s 4% and 7% base pay rise with conditions to government.

After organized Labour had proposed 15% for both years and subsequently coming down to 10% for 2021/2022, Government insisted on its earlier proposal of 4%/6% for 2021/2022.
However, as organized Labour kept on with it’s proposed figures of 10% for both years, Government side tabled 4% and 7% for 2021/2022 respectively with the condition that if the 10% holds, there will be retrenchment in the public sector.

Organized Labour after some caucus deliberations on the issues raised by Government side accepted their proposal of 4%/7% for2021/2022 respectively with the following conditions.

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1. That the agreement takes effect from 1st January 2021 with the payment of arrears spread as follows;
1 month arrears payment added on to August, September, October, November and 2months arrears on December 2021 catering for the 6months arrears.
2=That there will be no retrenchment during the period.
3=That Government should continue to recruit in the public sector.
4=That Government ensures that vaccines are made available for public sector workers.
5=That Government ensures full payment of Tier2 pension.

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Minimum Wage

The 2021 National Daily Minimum Wage has been increased by six per cent, that is 0.71 pesewas to GH₵12.53 effective June 4, 2021.

The new figure represents a 71 pesewas increase on the GH₵11.82 that took effect on January 1, 2020.

The International Labour Organization defines the minimum wage as “the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by collective agreement or an individual contract”.

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A communique by the National Tripartite Committee (NTC) on the 2021 and 2022 NDMW said the new wage was in line with the Labour Act, 2003 (Act 651) section 113 (1) (a) and after negotiations between members of the committee.

The negotiations also set the 2022 National Daily Minimum Wage which is to take effect on January 1, 2022, at GHc13.53.

The communique was jointly signed by the Minister of Employment and Labour Relations, Mr Ignatius Baffour Awuah, the President of the Ghana Employers’ Association, Mr Daniel Acheampong and the Secretary-General of the Trades Union Congress, Dr Anthony Yaw Baah.

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