Ghana’s National Daily Minimum Wage will increase by 25.4 per cent, from GH¢21.77 to GH¢25.04, effective January 1, 2027, following an agreement reached by the National Tripartite Committee.
The Committee has also approved a further increase in the minimum wage to GH¢28.79 per day from January 1, 2028, under a new two-year wage adjustment framework.
The decision was announced in a communiqué issued by the National Tripartite Committee after negotiations involving the government, employers and organised labour.
The 2027 adjustment represents an increase of GH¢3.27 per working day for employees currently earning the national minimum wage. By January 2028, the daily minimum wage will have increased by GH¢7.02 compared with the current rate of GH¢21.77.
Ghana Minimum Wage Increase: What Workers Should Expect
The new minimum wage rates are expected to provide additional income for thousands of Ghanaian workers whose earnings are pegged to the National Daily Minimum Wage.
The adjustment comes amid concerns about the cost of living, particularly rising household expenses associated with food, transportation, electricity, water and other essential goods and services.
However, the actual improvement in workers’ purchasing power will partly depend on inflation trends and changes in the prices of goods and services over the implementation period.
The two-year wage agreement is also expected to provide greater certainty for employers when preparing salary budgets and making financial projections.
Government, Employers and Labour Agree on New Wage Rates
The communiqué announcing the new minimum wage agreement was jointly signed by the Minister of Labour, Jobs and Employment, Emmanuel Kwadwo Agyekum; Deputy Minister of Finance, Thomas Nyarko Ampem; President of the Ghana Employers’ Association, Nana Dr Emmanuel Adu-Sarkodee Afriyie; and Secretary-General of the Trades Union Congress (TUC), Joshua Ansah.
The National Tripartite Committee explained that adopting a two-year wage framework would promote predictability in wage determination and support medium-term economic planning.
Under the agreement, workers will have a clearer understanding of the minimum daily earnings for 2027 and 2028, while businesses and employers will be able to plan their wage-related expenditure more effectively.
Employers Directed to Implement New Minimum Wage
The Committee has directed all companies, institutions, establishments and organisations paying workers below the revised minimum wage to adjust their daily pay rates from January 1, 2027.
Employers have also been urged to comply fully with the approved wage increases to ensure that eligible workers receive at least the legally prescribed minimum earnings.
Additionally, the Committee has recommended that the government make the National Daily Minimum Wage tax-exempt to improve the take-home earnings of low-income workers.
Minimum Wage Could Be Reviewed if Economic Conditions Change
Although the new wage rates are expected to remain in effect under the two-year arrangement, the Committee has indicated that they could be reviewed if significant changes occur in major economic indicators.
These indicators include inflation, exchange rate movements and Ghana’s overall economic growth.
Any proposed adjustment will be considered through consultations involving government representatives, employers and organised labour. The Committee said credible economic data would guide the review process, with any changes requiring consensus among the tripartite partners.
What Is Ghana’s National Daily Minimum Wage?
The National Daily Minimum Wage is the lowest legally prescribed amount an employer is required to pay an employee for one day’s work in Ghana.
It serves as a basic wage protection mechanism to prevent extremely low earnings and help safeguard workers’ living standards.
Although the minimum wage establishes the legal earnings threshold, salaries for many formal-sector employees are usually higher, depending on employment contracts, collective bargaining agreements and sector-specific salary arrangements.
The National Tripartite Committee, which comprises representatives of the government, employers and organised labour, is responsible for negotiating and determining Ghana’s national minimum wage.
The latest agreement establishes a two-year wage adjustment programme, with the first increase taking effect in January 2027 and the second in January 2028.
Source: newsthemegh.com