Raising the minimum wage in Ghana
New Increase Scheduled for March 2025
The National Minimum Daily Wage (NMWD) in Ghana will see a 10% increase from GHS 18.15 to GHS 19.97 (approx. USD 1.26) from March 1, 2025. This announcement was made by the National Tripartite Committee (NTC) in a communiqué dated February 20, 2025.
Background and reasons for the Upgrade
The CNT took this decision in consideration of the major economic challenges facing the country, including:
- High inflation, reaching 23.5% in January 2025.
- An unemployment rate of 3.1% in 2023.
- The rising cost of living and corporate sustainability concerns.
- The need to stimulate employment and economic growth.
Guidelines for Employers
The CNT recommends that :
- The minimum wage is tax-exempt.
- All employers whose minimum wages are below this new rate must adjust them before the implementation date.
Additional Government Measures
President John Dramani Mahama has launched initiatives to improve the well-being of citizens, including:
- The abolition of taxes deemed oppressive, such as the E-levy and the covid tax.
- Finance Minister Cassiel Ato Baah Forson‘s announcement in January of a“war on wasteful spending“.
SMJN revision history
This follows on from the January 1, 2024 increase, when the minimum wage was raised from 14.88 GHS to 18.15 GHS.
Conclusion
The new increase in the SMJN in Ghana reflects a desire to improve workers’ living conditions while supporting economic stability. This measure represents an important step towards inclusive economic growth and poverty reduction in the country.
