KEY POINTS
- Mahama urged labor unions to consider Ghana’s economic difficulties.
- The government approved a 10 percent minimum wage increase for 2025.
- An independent salary committee was proposed to ensure fair pay reviews.
President John Dramani Mahama has urged labor unions to consider Ghana’s economic difficulties as they push for new wage increases.
Speaking Thursday at a meeting with the National Tripartite Committee, Mahama acknowledged the financial struggles faced by workers but emphasized the need for fiscal discipline to ensure economic recovery.
“We all knew the economy was struggling, but what I’ve uncovered in office shows it was worse than expected,” Mahama said. “Ghana’s economy has been recklessly mismanaged, and we must act responsibly to fix it.”
The president guaranteed salary reviews for workers once conditions improved yet advised them against unwise wage increases that might trigger additional economic instability.
As part of the discussions, the National Tripartite Committee announced a 10 percent increase in the National Daily Minimum Wage (NDMW) for 2025, raising it to GHS 19.97, effective March 1, 2025.
Mahama pledges cost-cutting and fiscal discipline
Mahama assured workers that government officials would also share in the sacrifices needed to restore Ghana’s economy.
“There has been a trust deficit in the political class because while workers are asked to tighten their belts, politicians continue to enjoy luxuries,” he said.
To back up his words, he revealed that he had ordered budget cuts in the Office of Government Machinery, reinforcing the government’s commitment to reducing wasteful spending.
“The economy is like a kitchen struggling to cook enough food for everyone, and the pot itself is leaking,” Mahama said. “We need to fix the fundamentals first before making new commitments.”
He urged unions to hold off wage demands until Ghana reached a point of financial stability so that workers would benefit from improved monetary conditions.
Calls for an independent salary committee
The proposed solution to achieve fair transparent salary adjustments includes establishing an independent emoluments committee that would set wage rates for both public sector workers and politicians.
“We need an independent salary committee that ensures fair pay adjustments for everyone, from the president to the lowest-paid laborer,” Mahama said.
According to Graphic Online, he promised labor leaders that as soon as the economy recovers, salary structures would be reviewed again.
“When the economy improves, we all benefit,” he said. “If we have an independent salary committee, I will even support a 35 percent raise next time—because it would apply to me too.”
The National Tripartite Committee, which includes governmental officials, labor representatives and employers, plays a major role in determining Ghana’s wage policies.
The latest wage increase comes after Ghana’s 23 percent public sector salary raise in 2024, which was meant to cushion workers against the rising cost of living.
