JM’s team to conclude 2 types of salary increment negotiations for 2025 soon

JM’s team to conclude 2 types of salary increment negotiations for 2025 soon

Be rest assured. The process and latest information about the 2 types of salary increment negotiations for 2925 will be updated on this site regularly. We have already disclosed the timelines for this year’s salary increment negotiations here. You may want to abreast yourself to psych yourself about when to expect any negotiated increment.

Now this year, there are two (2) types of salary increments that will be negotiated and implemented. Though these two types of salary increments happened in the past, the speed at which it will be done this will be fast.

Why 2025 salary increments will be negotiated very fast

Salary increments in Ghana have become an annual ritual due to underlying conditions like inflation. Inflation for the year-end December 2024 is 23.8%. Double-digit inflation devalues salaries to glaring levels unlike single-digit inflation.

Unfortunately, double-digit inflation has existed over many consecutive years. This implies a significant reduction in the purchasing power of citizens with existing salaries.

This glaring reduction in purchasing power demands an urgent salary increase to cushion citizens and improves the circulation of money in the system.

Any further delays would mean that citizens will transfer their anger on the former NPP government to the newly formed NDC government.

Two types of salary increments to be negotiated

There are two types of salary increments that will be negotiated for this year.

The first salary increment is the daily minimum wage. This salary increment is negotiated between three (3) parties. They are the government, organized labor and employer’s associations. This negotiation team is called the Tripartite Committee because it involves three (3) main parties. Though the Fair Wages and Salaries Commission may be present. But the Fair Wages and Salaries Commission is merely with the government team.

The minimum wage is the salary that no employer should pay below it. And there are legal consequences for any employer that pays below it, especially the private sector. This is because no government worker is paid below this amount, but private sector employers may attempt to pay below it.

The second type of salary to be negotiated is the base pay salary increment for public sector workers only. The private sector employees have no business in these negotiations.

The base pay and salary negotiations also involve the government, organized labor and the Fair Wages and Salaries Commission now playing a major role.

The base pay salary increment is a percentage increment that applies to the salary of all public sector workers so that all of them are treated equally. This increment does not discriminate as to who gets a higher percentage increment or not. However, people who are already on a higher salary will definitely get higher nominal increments and those with less salary will get fewer add-ons.

Kindly refer to our publication of the timelines for the negotiations to conclude here

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