An Overview of Ghana’s National Tripartite Committee: Negotiating Minimum Wage and Base Pay

Ghana’s National Tripartite Committee, responsible for determining the country’s minimum wage and overseeing public sector pay negotiations, has commenced its discussions for 2025. The committee, which ensures a balance between the interests of the government, employers, and organized labor, will be led by Rashid Pelpuo, the newly approved Labour Minister, who is awaiting his swearing-in to officially take on the role.

The committee is made up of 15 members, with five representatives each from the government, employers’ organizations, and labor unions. They face a challenging task ahead.

The Trades Union Congress (TUC), a prominent representative of labor, is expected to advocate for significant wage increases, while employers and the government are working under economic constraints.

The Current Wage Landscape

As of February 2025, Ghana’s national daily minimum wage stands at 18.15 cedis, approximately 363 cedis per month based on a 20-working-day calculation. This amount was set in 2024 following a 22% increase, prompted by soaring inflation, which reached 54% in December 2023, marking the highest rate in over two decades. The 2024 wage hike was substantial, coming after more modest adjustments in previous years—6% in 2021, 8% in 2022, and 9% in 2023. The sharp increase last year highlighted the urgency of addressing the cost-of-living crisis, which has placed significant strain on low-income workers.

Beyond the minimum wage, the committee’s decisions will also have a major impact on public sector salaries. The Ministry of Finance has projected that total compensation for public sector employees will surpass 73 billion cedis in 2025, a figure that has raised concerns from the World Bank. The bank has consistently warned that Ghana’s public sector wage bill is unsustainable, noting that it puts a strain on the country’s fiscal resources.

Despite these warnings, public sector workers are expected to push for higher base pay, arguing that their salaries have not kept up with inflation.

What Lies Ahead

The 2025 negotiations come at a crucial time for Ghana’s economy. While inflation has eased from its 2023 peak, it remains a concern, particularly food inflation. Economic growth has been uneven, and the decisions made by the Tripartite Committee will have wide-reaching effects on both the livelihoods of millions of workers and the country’s fiscal stability.

As the committee deliberates, all eyes will be on whether it decides to implement another significant wage increase or take a more cautious approach to fiscal restraint. Either outcome will have significant consequences for Ghana’s economic trajectory in the coming year.