FAQs on Minimum Wages in Ghana

by Khushi Mehta — last modified Feb 28, 2012 08:05 AM

Minimum Wages in Ghana, All the Minimum Wages in Ghana, Questions and Answers about Minimum Wages in Ghana and more on AfricaPay Ghana.

 

FREQUENTLY ASKED QUESTIONS MINIMUM WAGES AS PER LAW MINIMUM WAGES AS IMPLEMENTED IN PRACTISE
Is there a separate legislation relating to minimum wages in Ghana? There is no separate legislation on minimum wages. However, Labour Act 651 mandates the National Tripartite Committee to determine the National Daily Minimum Wage. 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? The law does not specify anything in this matter. 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 are determined at national level for Ghana NA
On what basis is minimum wage calculated? The National Tripartite Committee is mandated in the Labour Law to determine national daily minimum wage. Employers base their calculation of employee's wage/salary on daily minimum wage. The permanent staff for instance are paid monthly minimum wage at the end of the month.
In case of weekly/monthly minimum wage, are they based on a fixed number of hours? The hours of work of a worker are a maximum of eight hours a day or forty hours a week.
Are governmental bodies, employer and/or trade union representatives involved in minimum wage setting? 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 This is the same as per practice
How are upratings (Adjustments) of minimum wage/s decided upon? It is mandated by the Labour Law that the minimum wage should be jointly determined bythe government, employers and organized labour. The National Tripartite Committee meets to determine the minimum wage every year.
Which are components of minimum wage? The labour law does not specify the components of the minimum wage The minimum wage is only based on the Consumer Price Index
How frequently is the fixed component of minimum wage updated? Fixed component of minimum wage is updated each year or annually
How frequently are the variable components of minimum wage updated? NA NA
What is/are the yardstick on which minimum wage upratings are based? The labour Law does not specify the yardstick(s) The National Tripartite Committee use the Consumer Price Index as the key indicator in the determination of the minimum wage
What is the national poverty line? (In national currency) Lower poverty line of 288.47 GHS per adult per year, and upper poverty line of 370.89 GHS per adult per year.
How often is poverty line updated? Poverty line is updated at irregular time lags
When was poverty line last updated?(Specify YYYY/MM) Poverty line was last updated in 2006
What is the percentage of minimum wage relative to the current poverty line? The minimum wage is 23.87% above the 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? The Labour Act does not specify the institution responsible for compliance. The Ministry of Employment and Social Welfare sometimes ensure compliance.
Which legal sanctions can be applied if compliance is lacking? The Law does not specify any sanction. 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? 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 the minimum wage? Even though there is no legal sanction, individuals can complain to employer/management, labour inspector and/or trade unions Individual may lodge a complain with the government, employers and trade union to take up the matter

 

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