By Prince Ahenkorah
Ghanaian workers are set to earn more next year following a 9 percent increase in the National Daily Minimum Wage (NDMW), announced by the National Tripartite Committee (NTC).
The new rate, which takes effect on January 1, 2026, will move the minimum wage from GH¢19.98 to GH¢21.77 per day.
The decision, reached at a meeting in Accra on Sunday, November 9, 2025, aligns with Section 113(1)(a) of the Labour Act, 2003 (Act 651).
The NTC said the upward review was influenced by the rising cost of living, the need to maintain business sustainability, and efforts to boost job creation amid early signs of economic recovery.
“This adjustment reflects our commitment to balancing the welfare of workers with the sustainability of businesses,” the Committee’s communique stated.
The Committee further cautioned employers whose daily wage structures fall below the new threshold to adjust accordingly, warning that non – compliance will attract sanctions under the law. It also recommended that the 2026 minimum wage be tax-exempt, ensuring workers fully benefit from the increment.
The government of Ghana, has also approved a 9 percent increase in base pay for all public sector workers under the Single Spine Salary Structure (SSSS) for the 2026 fiscal year.
The agreement, signed between the Fair Wages and Salaries Commission (FWSC), the Ministry of Finance, and Organised Labour, follows successful negotiations aimed at promoting stability and fairness across the public sector.
The Finance Minister, Dr. Ato Forson praised Organised Labour for their cooperation, noting that the increment aligns with efforts to consolidate Ghana’s economic recovery.
“The country has gone through difficult times with high inflation and interest rates, but today both indicators have declined. The government is working to further reduce inflation from the current 8 percent to ease the burden on Ghanaians,” Dr. Forson said.
He reaffirmed government’s commitment to sustaining stability and improving workers’ conditions, pledging full implementation of all agreed provisions.
Minister for Employment and Labour Relations Dr. Rashid Pelpuo also lauded both sides for the constructive dialogue, describing the outcome as a reflection of government’s dedication to labour harmony and economic resilience.
Chief Executive of the FWSC Dr. George Smith-Graham expressed appreciation to Organised Labour for their cooperation, noting that their engagement had contributed significantly to Ghana’s economic stability.
Meanwhile, TUC Secretary-General Joshua Ansah commended workers for their sacrifices in accepting the 9 percent increment but urged government to avoid introducing new taxes and tariff hikes that could erode the gains.
“We expect government to honour all commitments made during the negotiations and to protect workers’ welfare,” he emphasized.
The wage hike comes amid a sharp decline in inflation, offering a glimmer of relief to households and businesses.
A report by IC Research, a market intelligence firm, shows that headline inflation dropped to 8.0% in October 2025, the lowest level since June 2021.
The firm projects a further decline to 6.5% in November, driven by a favourable base effect and the strong performance of the cedi, which has helped reverse recent fuel price pressures.
“We expect headline inflation to drop sharply to 6.5% in November 2025, reflecting the cedi’s appreciation and reduced fuel costs,” the report noted.
IC Research also hinted at a possible policy rate cut by the Bank of Ghana (BoG) in the coming months, citing consistent disinflation and a stable macroeconomic environment.
Food inflation has returned to single digits (9.5%) for the first time since July 2021, while non-food inflation dropped to 6.9%, signalling broad-based price stability across consumer goods.
For many Ghanaian workers, the combination of rising wages and easing inflation could translate into real income growth and improved purchasing power in 2026.