Haruna Iddrisu, Labour & Employment Relations Minister
Government has increased the minimum daily wage of workers by GH¢0.80, representing a 10 percent increase in the current minimum wage of GH¢8.00.
The increment in the minimum wage, announced Wednesday by the Minister of Employment and Labour Relations, Haruna Iddrisu takes effect from January next year.
The decision was taken after a meeting of the national tripartite committee, comprising representatives from the Ghana Employers Association, Trades Union Congress (TUC), Fair Wages & Salaries Commission (FWSC), other labour unions and the Ministry of Employment and Labour Relations.
Employers have been urged to take note of the increase and apply same from the effective date announced.
Government in January this year increased salaries of public sector workers by 10 percent.
Prices of local items
Workers are really struggling to feed their families because the prices of locally produced items have been increased continuously due to the high cost of raw materials while imported items, which are produced on mass scale, are often cheaper.
Dr Philomena Nyarko, Government Statistician, recently announced the July rate of inflation was 16.7 percent from 18.4 percent in June, this year.
Producer price
Year-on-year ex-factory prices for July this year stood at 10.3 percent, Dr Nyarko announced, adding the monthly change rate was 0.9 percent.
She said the utilities sub-sector recorded the highest year-on-year producer price inflation rate of 36.6 percent.
This means that workers have to deal with the high cost of food and transportation, school fees, textbooks and rent from their meager salaries.
Tax for casual workers
A new (LI) under the country’s Income Tax Act, 2015, Act 896 (as amended) and the Value Added Tax Act, 2013, Act 870 (as amended) directed that all payment from employers to casual and temporary workers in Ghana for any work done shall be taxed by 5 percent.
Edward A. Gyamerah, Deputy Commissioner in-charge of Policy and Programmes at the Ghana Revenue Authority (GRA), who announced this, said: “Casual work comes under section 78 of the Labour Act so when paying that you will have to uphold 5 percent and pay same to GRA. If the person is a temporary worker which means his salary is determined for a certain period which normally is paid at the end of the month, they should be taxed in line with the standard provision i.e. you go to Section 1 and you use the individual rates to tax them.”
Interest rate
Ghana’s interest rate is currently over 25 percent which is among the highest on the continent.
Unemployment
Owing to the harsh economic conditions in the country, many youth are unable to secure jobs and the few that are employed are constantly being relieved of their posts.
Government continues to throw dust into the eyes of the uneducated masses in relation to the country’s economy.
By Samuel Boadi