The determination of a new National Daily Minimum Wage could influence discussions for fresh service conditions, particularly in the private sector.

These are the thoughts of some labour experts sampled by Joy Business, after the announcement of the 2021 Minimum wage, which takes effect today.

The National Tripartite Committee announced GH¢12.53 pesewas as the new National Minimum Daily Wage for this year, representing a 6% increase.

That of next year will be GH¢13.53 pesewas, an 8% Jump.

According to some of the experts who spoke on condition of anonymity, workers have a case for fresh collective bargaining agreements.

In a related development, the Chief Executive of the Ghana Employers Association, Alex Frimpong says the discussion should now be moved towards productivity.

“In terms of planning, forecasting, it becomes easier for employers to factor that into their budget and so that at least they know in advance the potential cost of compensation.  I think that the time is really good”.

“We really hope that one the pandemic is really out of the way, and second we are able to work together to improve productivity and third the economy also bounces back”, he added.

Background

The determination of the national minimum wage is in accordance with Section 113 (1) (a) of the Labour Act, 2003 (Act 651).

The National Tripartite Committee indicated that the Covid-19 pandemic and its attendant economic hardships strongly influenced the percentage increases of the National Daily Minimum Wage rate.

“In determining the new rates, the NTC took into account the impact of the Covid-19 pandemic on the national economy, cost of living, sustainability of businesses and the desirability of attaining high level of employment,” it stated.

The National Daily Minimum Wage rate for 2021 is to come into effect starting June 4, 2021, whereas that for 2022 comes into effect, January 1, 2022.

Thus, the Committee directed all organisations whose Daily Minimum Wage is below the 2021 National Daily Minimum Wage to adjust their rates accordingly with effect from June 4.