Public Sector Pay Increased by 30 Percent; COLA Suspended

The government has increased basic pay for the 2023 fiscal year by 30%, with effect from January 2023.

This comes after a meeting with Organised Labour on January 12, 2023, following many rounds of unsuccessful negotiations.

On the other hand, the Cost-of-Living Adjustment Allowance of 15%, which was introduced in July 2022 to cushion workers against the harsh economic conditions, will be suspended.

“The base salary has been raised by 30% for the fiscal year 2023… As I already stated, this ends the 15% COLA on base pay for 2022,” Minister of Employment, Ignatius Baffour-Awuah remarked.

The 30% agreement reached by the parties comes after several rounds of unsuccessful negotiations with organized labor, which initially demanded a 60% increase.

Dr. Yaw Baah, the General Secretary of the Trades Union Congress (TUC), thanked the government for this fresh step.

“The Leadership of Organised Labour would like to express our sincere thanks to the government for granting a 30% increase in base pay for 2023 for public sector workers. We are happy that it has ended peacefully today.

In a related event, the Finance Minister, who was also present at the meeting, stated that the increment will affect the 2023 budget but expressed his confidence in Organised Labour to ensure maximum productivity in order to negate any unfavorable outcomes.

“As I mentioned, this will take a toll on the budget, but we are confident that we will 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 labor issues,” Ken Ofori-Atta stated.

Also present at the meeting were a Deputy Minister of Finance, Hon. Abena Osei-Asare, the Chief Executive of the Fair Wage and Salaries Commission, Ing. Benjamin Arthur, and the Executive Director of the Civil and Local Government Staff Association, Ghana (CLOSSAG), Dr. Isaac Bampoe Addo.