Government Announces 10% Salary Increment for Public Sector Workers starting March 1

 

The government has officially approved a 10% salary increase for public sector employees, following successful negotiations with the Labour Union. President John Dramani Mahama personally engaged in discussions with union representatives to finalize this adjustment, which aims to ease the financial burden on workers.

This is the second wage hike in under a year, with the last adjustment occurring in 2024 when a 23% increase was implemented to counter the rising cost of living. According to Rashid Pelpuo, Minister of Labour, Jobs, and Employment, the new salary increment will take effect from March 1, 2025.

Minimum Wage Negotiations Underway

In addition to the pay rise, the National Tripartite Committee (NTC), which includes representatives from the government, employers, and organized labor groups, began negotiations on February 4, 2025, to determine the new minimum wage for the year. This discussion is crucial, as the minimum wage directly affects millions of workers in both formal and informal sectors, setting a benchmark for fair compensation.

The outcome of these negotiations will also play a vital role in determining future base pay adjustments for public sector employees. However, concerns have been raised about delays in the process. As per the Public Financial Management (PFM) Act, discussions on minimum wage and base pay were supposed to be concluded by April 2024 to ensure smooth integration into the 2025 national budget.

The Importance of Minimum Wage Adjustments

The minimum wage serves as a vital economic tool for protecting low-income earners and ensuring fair compensation. Adjustments to the wage structure consider inflation, cost of living, and economic growth, making them essential for maintaining workers’ purchasing power. For many, the minimum wage represents their primary source of income, impacting their ability to provide for themselves and their families.

As negotiations continue, public sector employees and labor groups remain hopeful that the government will take further steps to support workers and strengthen economic stability.

Below is the outcome