The base pay for the 2023 fiscal year has been increased by 30% by the government following many agreements with Organized Labour. The increase takes effect on January 01, 2023, after a meeting with Organized Labour on Thursday, January 12, 2023, after 10 unsuccessful rounds of negotiations between the two sides.

Organised Labour insisted on a 60% increase when base pay negotiations first started, and they were resolute about their stance despite numerous meetings with the government. The group have agreed to the 30% increment although it is not what they had demanded initially. 

Finance Minister, Ken Ofori Atta has however said that the increment will be a bane to Ghana’s economy. Speaking with the media, Finance Minister Ken Ofori-Atta stated that although the economic impact of the increase will be felt, the government is committed to maintaining a peaceful co-existence on the labour front. He expressed confidence that with enhanced productivity and the commitment given by both parties, peace will be ensured in the country as they discussed pensions and labour issues.

Dr Isaac Bampoe Addo, executive secretary of the Civil and Local Government Staff Association of Ghana (CLOGSAG), promised to collaborate with the government to broaden its revenue base to promote national development.

It is a good thing that the government has been able to achieve a consensus with Organized Labour and that the parties are also willing to embrace peaceful conversations.

Considering the current economic hardship in the country and the ensuing strike actions and demonstrations we have witnessed by concerned citizens and associations, this is the best decision in the interest of both the government and the members of Organized Labour. 

Meanwhile, the government must work hard with all relevant stakeholders to ensure that the economy is fixed. The 30% increment, which is meant to cushion Organized Labour during the current economic hardship cannot be sustained when the economy is still struggling.

By Priscilla Fumadorh

Priscilla is an entrepreneur and a creative communicator who loves to communicate through writing. She is passionate about national economic issues and does not miss a chance to offer her opinions on them for the good of the country.

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