Government after several negotiations with Organised Labour has increased base pay for the 2023 financial year by 30%.

The increment takes effect from January 1, 2023.

This follows a meeting with Organised Labour on Thursday, January 12 after ten unsuccessful negotiations between both parties.

“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,” Employment Minister, Ignatius Baffour-Awuah announced shortly after the decision was taken.

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.

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.”

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.”

The Finance Minister at the meeting noted that the increment will put a strain on the country’s finances.

“As I mentioned this will take a toll on the budget, but we are confident that we would enhance productivity and the commitment that we both have given to each other to make sure that there  is peace in this country as we look at pension and labour issues.”

By this decision, the government said the 15% Cost of Living Allowance (COLA) for public sector workers has ceased.