FAQs on Minimum Wages in Ghana
by
Khushi Mehta
—
last modified
Feb 13, 2012 07:04 AM
| 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 and there is no section in the Labour Act on minimum wages as well. | 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? | 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 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 by the 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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