President Nana Akufo-Addo says Cost of Living Allowance (COLA) is to cushion inflation
Starting from July 2022, each public worker in Ghana would have a 15 per cent raise in his or her wages.
Platforms Africa reports that this pay rise is to reflect current economic situation in the West African country, particularly to cushion the effect of skyrocketing inflation that has beset it in recent years, which has greatly reduced the general quality of living.
Named Cost of living Allowance (COLA), the move is the major highlight of the agreement the Ghanaian government signed with the workers, in exchange for a stable workforce in the economically-troubled country, where cost of living has become a major problem.
Kojo Oppong Nkrumah, Minister of Information, Ghana, said the decision was reached after consultations with the country’s organised labour and other stakeholders, in a tweet on Friday, adding that the allowance took effect on July 1 — the same day Ghana sought the support of the International Monetary Fund (IMF) for its economic crisis.
“Government and organised Labour have concluded negotiations for Cost of Living Allowance. A 15 percent allowance has been agreed effective July 1. Government is keen on mitigating the impact of global challenges on the people of Ghana,” he said in a tweet.
Government and organised Labour have concluded negotiations for Cost of Living Allowance. A 15% allowance has been agreed effective July 1. Govt is keen on mitigating the impact of global challenges on the people of Ghana.
The government agreed that COLA would be paid at a rate of 15 percent of the base pay of public workers after negotiations between the government and organised labour concluded on Thursday evening.
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Ghana is one of the low-income nations currently being battered by the effects of Covid-19 and the war between Russia and Ukraine.
Last month, Ghanaians thronged the streets of Accra in protest against skyrocketing energy costs and the newly imposed e-levy, which mandates them to pay a 1.5 percent tax for every electronic transaction they carry out.
President Nana Akufo-Addo, last week, asked Ken Ofori-Atta, finance minister, to commence formal engagements with IMF to secure support to address economic woes in the country.
