30% base pay increment will affect government’s purse – Ofori-Atta

Finance Minister, Ken Ofori-Atta, says the 30% salary increment for public sector workers will affect.

the government’s purse.

According to him, even though the agreement will benefit workers, it will have.

an impact on the government’s 2023 budget.

The Finance Minister made this disclosure after the government agreed with Organised Labour.

for a 30% base pay increase for the 2023 financial year on Thursday.

“This is going to take a toll on the budget, but I’m confident.

that with enhanced productivity and the commitments that both parties have given to each other.

to make sure that there’s peace in this country as we look at pension issues,.

labor issues, I think we’ve come to a satisfied conclusion,” he said.

The agreement was reached after several negotiations with Organised Labour had failed.

The increment takes effect from January 1, 2023.

Employment Minister Ignatius Baffour-Awuah announced shortly after the decision was taken that “the.

base pay has been increased by 30% for the 2023 financial year…As I said, this.

brings to an end the 2022 COLA of 15% of base pay salary”,

At.

the beginning of negotiations for the base pay, Organised Labour demanded a 60% percent increment.

and refused to back down on their demand despite several engagements with the government.

After refusing the government’s proposal of 18%, the public sector workers decided to.

reduce their initial 60% demand to 58%.

However, after Thursday’s meeting with the government, which included Finance Minister Ken Ofori-Atta,.

who has been absent from all the previous meetings, Organised Labour agreed to a 30%.

increase in the base pay although they had vowed not to back down on their.

demand.

At the end of the engagement, the General Secretary of the Trades Union.

Congress (TUC), Dr.

Yaw Baah, expressed gratitude to the government for this new development.

“The Leadership of organized Labour would like to express our sincere thanks to.

the government for granting a 30% increase in base pay for 2023 for public sector.

workers.

We are happy that it has ended peacefully today.

The 30%, even though it is not what we want, it will create.

that opportunity for us to speak one language to work together”, he noted.

On his part, the Executive Secretary of the Civil and Local Government Staff.

Association, Ghana (CLOGSAG), Dr.

Isaac Bampoe-Addo, told the government delegation that “we want to assure the government that we.

will collaborate with them and come up with ideas to improve the revenue generation.

We know the next time we meet for base pay negotiations, it will.

be a better story”.