President Mahama Urges Organized Labour to Moderate Salary Demands Amid Economic Recovery Efforts

By
Ellis Ferdinand
-
President Mahama Urges Organized Labour to Moderate Salary Demands Amid Economic Recovery Efforts
President Mahama Urges Organized Labour to Moderate Salary Demands Amid Economic Recovery Efforts

Ferdinand | EducationGhana |  February 20| President Mahama Urges Organized Labour to Moderate Salary Demands Amid Economic Recovery Efforts

 

President John Dramani Mahama appeals to organized labour to moderate their demands as his government works to stabilize the economy. A 10% salary increase for public sector workers has been approved, effective January 1, 2025.

 

📍 Accra, Ghana – February 20, 2025

📌 Mahama’s Call for Moderation in Labour Demands

President John Dramani Mahama has appealed to organized labour to exercise moderation in their salary demands, as his government takes measures to correct economic challenges inherited from the previous administration.

Speaking at a meeting with labour unions in Accra on Thursday, February 20, 2025, Mahama emphasized the urgent need to stabilize the economy before significant wage increases can be granted.

“We all knew the economy was in crisis, but some of the things I am discovering myself show criminal mismanagement of our economy. Ghana is a crime scene because how a government can be so reckless, I can’t understand it,” Mahama stated.

He assured labour representatives that his administration is cutting down wasteful government spending to redirect funds towards economic recovery.

📌 Government to Cut Spending & Prioritize Economic Recovery

To demonstrate commitment to prudent financial management, Mahama has instructed Finance Minister Dr. Cassiel Ato Forson to reduce government expenditure, including a review of unnecessary budget allocations.

“We must all make sacrifices. A certain distrust for the political class has arisen because when everybody else is tightening their belt, politicians seem to be loosening theirs. I want to assure you that we are all going to tighten our belts, and there will be no wasteful expenditure,” he stated.

Mahama further explained that once economic growth and inflation are brought under control, the government will be able to fairly distribute national wealth to improve workers’ welfare.

📌 10% Salary Increase for Public Sector Workers Approved

Following negotiations with organized labour, the Government of Ghana has approved a 10% salary increment for all public sector workers under the Single Spine Salary Structure (SSSS).

🔹 Key Details of the Salary Increment

✅ New Salary Increase: 10%
✅ Effective Date: January 1, 2025 – December 31, 2025
✅ Applies To: All public sector workers under the Single Spine Salary Structure (SSSS)
✅ Previous Increase: 23% in 2024

Organized labour initially demanded a 60% salary increase, later reducing their proposal to 35%. However, after direct intervention from President Mahama, labour leaders accepted a 10% adjustment.

“We know that times are hard, but we must work together to ensure sustainable economic recovery. Once the economy stabilizes, we will all enjoy the benefits of growth,” Mahama assured the labour unions.

📌 Increase in National Daily Minimum Wage

The National Tripartite Committee has also approved a 10% increase in the national daily minimum wage.

🔹 New Minimum Wage Breakdown

✅ Old Minimum Wage (2024): GH₵19.97
✅ New Minimum Wage (2025): GH₵21.97
✅ Percentage Increase: 10%
✅ Effective Date: March 1, 2025

Minister for Employment and Labour Relations, Dr. Abdul-Rashid Pelpuo, announced that all establishments and employers must adjust salaries accordingly to comply with the new minimum wage regulations.

“The effective date for the implementation of the 2025 minimum wage shall be March 1, 2025. All institutions whose wages are below the new minimum must adjust accordingly,” Pelpuo stated.

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📌 The Road Ahead: What Workers Should Expect

🔹 Short-Term Implications

📌 💰 Increased Take-Home Pay: Workers will see a slight increase in salaries from March 2025.
📌 📈 Inflation Concerns: The 10% increase may not fully cover the rising cost of living.
📌 🏛️ Government’s Economic Plan: The Finance Ministry aims to balance salary adjustments with debt control measures.
📌 ⚖️ Labour Unions’ Mixed Reactions: Some labour leaders welcomed the increase, while others felt it was inadequate.

🔹 Future Projections & Mahama’s Promises

🔹 More Salary Adjustments Possible: Depending on economic performance, the government may review wages again in mid-2025.
🔹 Sustainable Growth Plans: The administration is focusing on improving revenue generation and reducing wasteful spending.
🔹 Independent Emoluments Committee: Mahama proposed a new salary-setting framework that will ensure fair wages across all sectors, from president to labourers.

“We are proposing an independent emoluments committee that will set the incomes for everybody, from the president to the ordinary worker,” Mahama disclosed.

📌 Conclusion: Will the 10% Salary Increase Be Enough?

While the 10% salary increment and minimum wage adjustment provide some relief for workers, many believe it falls short of expectations given the high inflation and cost of living in Ghana.

However, Mahama’s commitment to economic stabilization and prudent spending could pave the way for better wage adjustments in the future.

📢 What are your thoughts on the 10% salary increase? Should labour unions have pushed for more? Share your comments below!

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