The President of the Association of Ghana Industries (AGI), Dr. Humprey Kwesi Ayim-Darke, has stated that the recent 10% increase in the minimum wage will have a minimal impact on the financials of formalized enterprises, as most of them already pay their workers above the minimum wage.
Speaking on PM Express on Joynews on February 20, Dr. Ayim Darke cited his HR department’s review structure, noting that a lot of factors have come together over the years that have led to a review of the wages of workers, prompting several enterprises to adjust their employees’ compensation accordingly.
“In our HR Department, there are structured review periods, and there are various factors that lead to the review, including inflationary rates, cost of living allowances, and utility pricing. So while the events were playing out a couple of years ago, a number of enterprises made some significant adjustments.”
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According to him, since most enterprises have already factored in the rising cost of living over the years and made adjustments to their workers’ wages, the recent 10% increment is unlikely to necessitate a further review of the minimum wage.
“When you do the computation per the 10% increment and you multiply it per the number of days of work, it’s way above the GHS500.00 per minimum wage, and our factory hands largely pay above that. i do not see that to distort our pay structure.”
He admitted that the hike could add an additional cost burden; that should not be a difficulty, irrespective of the state of the economy.
“Yes, our cost input from the labor section will change. Some will take advantage to renegotiate. But most sensitive employers, considering the event of the inflationary rates in the recent past that drove up almost to 52 and trickled down, were sensitive and made adjustments accordingly.”
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Background :
The government and organized labor have signed an agreement to increase the base pay for public sector workers, which was announced on Thursday, February 20.
The minimum wage has been increased by 10%, resulting in a new rate of GH₵19.97, following protracted negotiations between the government and labor unions.
The wage adjustment is part of efforts to balance fair worker compensation with economic stability and business sustainability, which is mandatory for all establishments, institutions, and organizations.