Minimum Wage
The national daily minimum wage is set by the National Tripartite Committee, headed by the Minister for Employment & Social Welfare. This wage applies to all workers except the Armed Forces, the Police Service, the Prison Service and the Security and Intelligence Agencies as specified under the Security and Intelligence Agencies Act.
The minimum wage rate applies nationwide except the free trade zones where employers are free to negotiate and establish contracts of employment including wage levels, as long as these agreements are in line 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 Committee sets the minimum wage on a daily basis, and the Minister responsible for publishing the new rate in the Gazette and in such public media
The minimum wage rate may also be determined under a collective agreement as long as its rates are higher than the national daily minimum wage, as announced by the government.
If the Chief Labour Officer find that such the collective agreement is also suitable for other workers, workers who are doing similar jobs or working in the same area, and that the parties involved fairly represent those workers, the agreement may be extended to cover this wider group. To do this, a notice must be published in the Official Gazette at least three months in advance.
Compliance with minimum wages including other provisions of the Labour Act 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, an inspector may report the matter to the government, employers and trade unions 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 (Act 651); §34 of the Free Zones Act, 1995 (Act 504); Security and Intelligence Agencies Act, 2020 (Act 1030)
For updated minimum wage rates, please refer to the section on minimum wage.
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.
Ghana’s Labour Act requires that all workers be paid their wages in legal tender (legally recognised currency in the country). Employers must pay workers on time, as agreed in the contract of employment. The law allows part of the wages to be paid in kind, such as goods or services. In such cases, the total pay includes the worker’s regular wages (excluding overtime) plus the cash value of any in-kind payments.
The employer may not compel the worker to use its store and services. However, after the worker's consent, the employer may deduct a 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, to cover the loss or damage caused by the worker, or in case an excess amount is paid due to some error.
Deductions should not cause financial hardship to the worker or their dependents. Employers are not allowed to deduct wages through interest, discounts, or similar charges on salary advances, or in any way not clearly permitted by law.
Sources: §16, 20, 67-71 & 175 of the Labour Act, 2003 (Act 651)
