The government of Ghana and Organized Labour have finally agreed on the 30% increment of base pay for the 2023 financial year after several negotiations.
This comes after a meeting with the Organized labour on Thursday, January 12, 2023, following ten failed negotiations between the two parties.
The increment is announced to take effect on 1st January 2023.
“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.
The Organized Labour initially requested a 60% base pay increment and refused to back down on their demand despite several engagements with government.
The public sector workers decided to reduce their demand to 58% after refusing government’s proposed 18% base pay increment.
However, following Thursday’s meeting with the government, which included Finance Minister Ken Ofori-Atta, who had been absent from all previous meetings, Organised Labour agreed to a 30% increase in base pay, despite having previously stated that they would not back down from their demand.
The General Secretary of the Trades Union Congress (TUC), Dr. Yaw Baah expressed gratitude to the 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 said.
Meanwhile, 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,” Finance Minister, Ken Ofori-Atta said.
By this decision, the government said the 15% Cost of Living Allowance (COLA) for public sector workers has ceased.
