Work and Wages

Minimum Wage

The national daily minimum wage is set by the National Tripartite Committee, headed by the Minister for Employment & Social Welfare, for all workers except the Armed Forces, the Police Service, the Prison Service and the Security and Intelligence Agencies specified under the Security and Intelligence Agencies Act. The minimum wage rate applies to all of Ghana except the free trade zones where employers are free to negotiate and establish contracts of employment including wage levels that are consistent with ILO conventions.

National Tripartite Committee is composed of five representatives each from all social partners (Government, employer and the worker) and is headed by the Minister for Employment & Social Welfare. The minimum wage in Ghana is determined on daily basis by the National Tripartite Committee. The Minister publishes in the Gazette and in such public media as the Minister may determine, a notice of the national daily minimum wage determined by the National Tripartite Committee.

Minimum wage rate may also be determined under a collective agreements as long as its rates are higher than the national daily minimum wage, announced by the Government. If the Chief Labour Officer considers that the terms of a collective agreement are suitable for application to a class of employees who are engaged in the same type of work, or who work in the same area, as the employees to whom the collective agreement applies, and that the parties to the collective agreement are sufficiently representative of the employees to whom it is proposed to apply, an order to extend the collective agreement may be made. A notice must be published in the Official Gazette at least three months prior to the agreement being extended.

Compliance with minimum wages including other provisions of Labour Code relating to hours of work, safety, health and welfare of the workers and the employment of young persons is ensured by the labour inspectors. In case of non-compliance, may lodge a complaint with the government, employers and trade union to take up the matter. However, the law does not specify the punishment in this regard.  A fine can be imposed only if the employer fails to comply with the directions given by the labour inspector.

Sources: §70-71, 98(c), 109 & 112-115, 124 of the Labour Act, 2003 (Act651); §34 of the Free  Zones Act, 1995 (Act 504); Security and Intelligence Agencies Act, 1996 (Act 526)

Regular Pay

According to the Labour Act 2003, remuneration includes the basic or minimum wage or salary and any additional allowances payable directly or indirectly by the employer to the worker on account of the worker’s employment.

The Labour Act regulates the payment of wages and requires that wages be paid in legal tender to all classes of workers. Law requires the employer to make timely payment of remuneration to the workers. Monthly payment is made to the worker employed on monthly basis and weekly payment to those employed on weekly basis. Labour Act allows in-kind payment of wages as the term "full pay" means the worker’s normal remuneration, without overtime payment, including the cash equivalent of any remuneration in kind.  . 

The employer may not compel the worker to use its store and services. Employer may, after worker's consent, deduct certain amount from the wage due as union membership dues or contributions to any provident, pension, or other fund or scheme agreed to by the worker; or to cover the loss or damage caused by the worker; or in case excess amount is paid due to some error.

Rate of deduction should be set in a manner that it does not result in hardships for the worker and his/her dependents. Deduction may not be made by way of discount, interest or any similar charge on account of an advance of remuneration made to a worker in anticipation of the regular period of payment of remuneration or in any way not specified by the law.

Sources: §16, 20, 67-71 & 175 of the Labour Act, 2003 (Act 651)

Regulations on Work and Wages

  • Labour Act, 2003
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