Ghana Employers Association says after an increase in the daily minimum wage the focus must now be on productivity.
According to him, the timing of the increase is good.
The increase takes effect from today, June 4, 2021.
Alex Frimpong, Chief Executive Ghana Employers Association said employers must also factor the increase into the budget for them to know the potential compensation cost.
"In terms of planning and forecasting, it is time for employers to factor that into their budget so that at least they know in advance the potential cost of compensation. So I think the timing very good we will only hope and pray that the pandemic will be out of the way and we are able to work together to improve productivity."
Background
The National Tripartite Commission (NTC) yesterday concluded negotiations on the determination of the National Daily Minimum Wage in respect of 2021 and 2022 at its meeting held Thursday, June 3 in Accra.
This is in accordance with Section 113 (1) (a) of the Labour Act, 2003 (Act 651).
At the end of the meeting, it was concluded that the 2021 National Daily Minimum Wage will be ¢12.53, which is a 6% increment of the 2020 figure of ¢11.82.
And for the year 2022, National Daily Minimum Wage will be pegged at ¢13.53, an 8% increment of the 2021 figure.
According to the NTC press statement announcing the new rates, the Commission indicated that the Covid-19 pandemic and its attendant economic hardships strongly influenced the percentage increases of the National Daily Minimum Wage rate.
“In determining the new rates, the NTC took into account the impact of the Covid-19 pandemic on the national economy, cost of living, sustainability of businesses and the desirability of attaining high level of employment,†it stated.
The National Daily Minimum Wage rate for 2021 is to come into effect starting June 4, 2021, whereas 2022 comes into effect, January 1, 2022.
Thus, the Commission directed all organisations whose Daily Minimum Wage is below the 2021 National Daily Minimum Wage to adjust their rates accordingly with effect from June 4.
“Any establishment, institution, or organization that flouts the new rate shall be sanctioned in accordance with the law,†it warned.