Monday, 08 September

Organised Labour demands overhaul of minimum wage formula

Business
Workers

Organised Labour has called for a complete review of the formula used to determine Ghana’s minimum wage, arguing that the current system fails to reflect the real cost of living faced by workers.

The demand, formalised in a petition to the government in late August 2025, seeks a new and more realistic wage structure beginning in 2026, beyond the recent 2025 adjustment.

In an interview with Ahotor FM, the Secretary-General of the Ghana Federation of Labour (GFL), Abraham Koomson, confirmed that the Tripartite Technical Committee met last week to deliberate on the matter.

He criticised the heavy reliance on inflation figures in the current formula, insisting it does not capture the full economic pressures confronting workers.

“The inflation figure used in determining the minimum wage is not helping, so we are pushing to change it,” Mr. Koomson said.

He explained that while inflation remains a critical factor, it does not adequately account for other essential living costs such as rent, transportation, utilities, and food prices.

As such, Organised Labour is advocating for a cost-of-living-based formula that guarantees fairer wages and better protects workers’ welfare.

In January 2025, the National Daily Minimum Wage was raised by 10 percent to GH₵19.97 following negotiations by the National Tripartite Committee.

However, Mr. Koomson insists that despite this increase, the formula remains inadequate.

 

He emphasised that the new system must be comprehensive, sustainable, and worker-centred, ensuring that wages genuinely support livelihoods rather than just keeping pace with inflation.

Source: classfmonline.com/Cecil Mensah