Government Announces 10% Increase in Daily National Minimum Wage

Accra: The Government has announced a 10 per cent increase in the National Daily Minimum Wage (NDMW), setting the new rate at GHS19.97, to be implemented starting 1st March 2025.According to Ghana News Agency, this decision was finalized in a communique issued by the National Tripartite Committee (NTC) concerning the 2025 NDMW. The document was signed by key representatives: Dr Abdul-Rashed Hassan Pelpuo, Minister of Labour, Jobs and Employment for the Government; Dr Emmanuel Adu-Sarkodee, President of the Ghana Employers' Association (GEA) for Employers; and Mr Joshua Ansah, Secretary-General of the Ghana Trades Union Congress (TUC) for Organised Labour.The communique stated that the conclusion of the 2025 NDMW negotiations was in accordance with Section 113 (1) (a) of the Labour Act, 2003 (Act 651). The NTC's meeting on 20 February 2025 in Accra focused on the economic challenges, cost of living, business sustainability, and the goal of achieving higher employment levels.The NTC decided on the 10 per cent increase over the 2024 NDMW, resulting in the new rate of GHS19.97, effective from 1st March 2025. Establishments, institutions, or organisations with daily minimum wages below the new rate are required to adjust their wages accordingly by the effective date.The communique also warned that any entity failing to comply with the 2025 NDMW would face legal sanctions. Additionally, the NTC recommended that the 2025 NDMW should be exempt from taxes.