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

New Wage Policy Aims to Address Cost of Living and Employment Growth

The Government of Ghana has announced a 10% increase in the National Daily Minimum Wage (NDMW), raising it from GH¢18.15 to GH¢19.97, effective March 1, 2025. This decision was made by the National Tripartite Committee (NTC) in accordance with Section 113 (1) (a) of the Labour Act, 2003 (Act 651).

The wage adjustment follows a meeting held on February 20, 2025, in Accra, where key economic factors such as inflation, cost of living, business sustainability, and employment levels were considered. The increase aims to support workers’ purchasing power while ensuring that businesses remain viable. The committee noted that rising living costs and economic conditions required an upward revision of wages to maintain a balance between fair compensation and economic stability.

Implementation and Compliance

From March 1, 2025, all businesses, institutions, and organizations must comply with the new wage structure. Employers who fail to implement the wage adjustment will face penalties, as stipulated by Ghanaian labor laws.

Additionally, public sector workers under the Single Spine Salary Structure (SSSS) will also receive a 10% salary increase, effective January 1, 2025. This adjustment was agreed upon between the government and Organized Labour, represented by the Fair Wages and Salaries Commission (FWSC), the Ministry of Labour, Jobs and Employment (MLJE), and the Ministry of Finance (MoF). The salary increase will run throughout the 2025 fiscal year, providing additional financial relief for government employees.

Tax Exemption and Economic Impact

The NTC has recommended that the 2025 NDMW be tax-exempt, ensuring that workers receive the full benefits of the increase without deductions. This decision is expected to boost disposable income and improve the overall standard of living for workers in Ghana.

The latest wage adjustment reflects Ghana’s commitment to balancing economic growth with fair labor policies, ensuring that both workers and businesses thrive. The last wage increase took effect in January 2024, when the Nana Akufo-Addo administration raised the NDMW to GH¢18.15 per day.

This increase in minimum wage highlights the government’s continued efforts to protect workers, sustain employment levels, and strengthen economic resilience in the face of evolving financial challenges.