Finance Minister, Ken Ofori-Atta, says the 30% salary increment for public sector workers will affect government's purse.

According to him even though the agreement will benefit workers, it will have an impact on government's 2023 budget.

The Finance Minister made this disclosure after government agreed with Organised Labour for a 30% base bay increase for the 2023 financial year on Thursday.

"This is going to take a toll on the budget, but I'm confident that with enhanced productivity and the commitments that both parties have given to each other to make sure that there's peace in this country as we look at pension issues, labour issues, I think we've come to a satisfied conclusion", he said.

The agreement was reached after several negotiations with Organised Labour had failed.

The increment takes effect from January 1, 2023.

Employment Minister, Ignatius Baffour-Awuah announced shortly after the decision was taken that, “the base pay has been increased by 30% for the 2023 financial year…As I said this brings to an end the 2022 COLA of 15% of base pay salary",

At the beginning of negotiations for the base pay, Organised Labour demanded a 60% percent increment and refused to back down on their demand despite several engagements with government.

After refusing government’s initial proposal of 18%, the public sector workers decided to reduce their initial 60% demand to 58%.

However, after Thursday’s meeting with government which included Finance Minister Ken Ofori-Atta who has been absent from all the previous meetings, Organised Labour agreed to a 30% increase in the base pay although they had vowed not to back down on their demand.

At the end of the engagement, the General Secretary of the Trades Union Congress (TUC), Dr. Yaw Baah, expressed gratitude to government for this new development.

“The Leadership of organized Labour would like to express our sincere thanks to government for granting 30% increase in base pay for 2023 for public sector workers. We are happy that it has ended peacefully today.

The 30% even though it is not what we want, it will create that opportunity for us to speak one language to work together", he noted.

On his part, the Executive Secretary of Civil and Local Government Staff Association, Ghana (CLOGSAG), Dr. Isaac Bampoe-Addo told the government delegation that, “we want to assure government that we will collaborate with them and come up with ideas to improve the revenue generation.

We know the next time we meet for base pay negotiations, it will be a better story".