Minimum Wage in Ghana - Frequently Asked Questions

Is there a separate legislation relating to minimum wages in Ghana?

MINIMUM WAGES AS PER LAW: There is no separate legislation on minimum wages and there is no section in the Labour Act on minimum wages as well.

MINIMUM WAGE IMPLEMENTED IN PRACTISE: The Labour 651 mandates the National Tripartite Committee to determine the national minimum wage in Ghana.

Do one or more minimum wages exist that is/are determined by law?

MINIMUM WAGES AS PER LAW: The law does not specify anything in this matter.

MINIMUM WAGE IMPLEMENTED IN PRACTISE: There is one minimum wage for all the sectors of the economy. This is determined by the National Tripartite committee.

At what level is minimum wages determined?

MINIMUM WAGES AS PER LAW: Minimum Wages are determined at national level for Ghana

On what basis is minimum wage calculated?

MINIMUM WAGES AS PER LAW: The National Tripartite Committee is mandated in the Labour Law to determine national daily minimum wage.

MINIMUM WAGE IMPLEMENTED IN PRACTISE: Employers base their calculation of employee's wage/salary on daily minimum wage. The permanent staff for instance is paid monthly minimum wage at the end of the month.

In case of weekly/monthly minimum age, are they based on any fixed number of hours?

MINIMUM WAGES AS PER LAW: By law the maximum working week is 45 hours but collective bargaining has established a 40-hour week for most unionized workers

Are governmental bodies, employer and/or trade union representatives involved in minimum wages setting?

MINIMUM WAGES AS PER LAW: Statutory bodies which are mandated by the Labour Law to determine the daily minimum wage are Ministry of Employment and Social Welfare, Ghana Employers' Association, and Trade Union Congress

How are upratings (adjustments) of minimum wage/s decided upon?

MINIMUM WAGES AS PER LAW: It is mandated by the Labour Law that the minimum wage should be jointly determined by the government, employers and organized labour.

MINIMUM WAGE IMPLEMENTED IN PRACTISE: The National Tripartite Committee meets to determine the minimum wage every year.

Which are the components of minimum wage?

MINIMUM WAGES AS PER LAW: The labour law does not specify the components of the minimum wage.

MINIMUM WAGE IMPLEMENTED IN PRACTISE: The minimum wage is only based on the Consumer Price Index.

How frequently is the fixed component of minimum wage updated?

MINIMUM WAGES AS PER LAW: Fixed component of minimum wage is updated each year or annually

How frequently are the variable components of minimum wage updated?

NA

What is/are the yardstick/s on which minimum wage upratings are based?

MINIMUM WAGES AS PER LAW: The labour Law does not specify the yardstick(s).

MINIMUM WAGE IMPLEMENTED IN PRACTISE: The National Tripartite Committee uses the Consumer Price Index as the key indicator in the determination of the minimum wage.

What is National Poverty line?

Click here to know the national poverty line in context with Minimum Wage, living wages and actual wages. Select the currency (Euro or national currency) to know national poverty line.

What is the incidence of minimum wages in the national labour force (wage earners only)?

Over 80 % of wage earners are paid above minimum wage

How is minimum wages compliance regulated?

MINIMUM WAGES AS PER LAW: The Labour Act does not specify the institution responsible for compliance.

MINIMUM WAGE IMPLEMENTED IN PRACTISE: The Ministry of Employment and Social Welfare sometimes ensure compliance.

Which legal sanctions can be applied if compliance is lacking?

MINIMUM WAGES AS PER LAW: The Law does not specify any sanction.

MINIMUM WAGE IMPLEMENTED IN PRACTISE: There is no punishment in case of non compliance.

Are sanctions often being applied?

Sanctions are rarely applied

Are employer and/or trade union representatives involved in compliance procedures?

MINIMUM WAGES AS PER LAW: Ghana Employers' Association are involved in compliance procedures. The employers normally encourage their members to comply with minimum wages.

To whom/where can individuals complain, if they think they are earning less than minimum wages?

MINIMUM WAGES AS PER LAW: Even though there is no legal sanction, individuals can complain to employer/management, labour inspector and/or trade unions.

MINIMUM WAGE IMPLEMENTED IN PRACTISE: Individual may lodge a complaint with the government, employers and trade union to take up the matter.