Focus On Living Wage – Policy Makers Told

Labour consultant,  Senyo Adjaben is calling for more attention to be given to living wage as compared to the minimum wage.

According to him, considering the impact of COVID-19 on the economy, this call has become important in order to sustain the livelihoods of Ghanaians.

The country’s current minimum wage is 11 cedis 28 pesewas which translates into 319 cedis 14 pesewas at the end of the month.

The minimum wage is an amount set by law, whereas the living wage is determined by average costs to live.

In 2019, the country’s minimum wage was increased by 10% to 10 cedis 65 pesewas from 9 cedis 68 pesewas in 2018.

Although the country’s minimum wage has over the years received a constant review indebtedness, empty bank accounts, harsh living conditions and unattainable pension plans are the common challenges facing majority of Ghana’s minimum wage earners.

Speaking to journalists at a forum in Accra on the development ahead of the review of the country’s minimum wage, Senyo Adjaben said given the current circumstances of the country, there should be more focus on living wage in order to guide business owners and employers.

“The minimum wage is the barest minimum that a country uses to determine the standard of living in the country, but I know that for some time now the labour union has been advocating for a living wage which normally takes into consideration the specific economic conditions in the country and the barest minimum amount of money people need to survive as workers, so basic things like transportation, clothing and housing are used as factors to determine the living wage .that normally is a lot more realistic than minimum wage which is really y the barest minimum, he said.

He added that all Ghanaian workers should add their voice to the push for the use of the living wage.

“I think that we should all be advocating for a living wage that also will be a kind of guide to employers rather than just limiting them to minimum wage because at the end of the day, inflation will take most of it away and the employee will lose the actual value of the implement that they gained especially from the minimum wage”.