30% pay rise will take a toll on budget – Ofori-Atta
Finance Minister, Ken Ofori-Atta
Finance Minister Ken Ofori-Atta has stated that despite the agreement reached between governemnt and organised labour for a 30% increase in salary, this will come as a burden to the 2023 budget.
The agreement came after series of meetings and negotiations between government and public sector workers.
They however agreed on a 30 percent increment of the Single Spine Base Pay for public sector workers for the 2023 Financial Year even though that was not labour’s initial request.
However, Ofori-Atta said due to the current economic issues, this will have a significant impact on the economy even though it will settle all labour unrest in the year.
According to classfmonline.com, in a media address, Ofori-Atta said: “This is going to take a toll on the budget, but I am confident that with enhanced productivity and the commitment that we have given to each other, it will ensure that there is peace in this country as we look at pension and labour issues.”
Per the agreement, the 2022 Cost of Living Allowance (COLA) of 15 per cent on the base pay will be discounted.
The salary increment will however take effect from January 1, 2023, according to Minister of Employment and Labour Relations Ignatius Baffour-Awuah.
Mr Ignatius Baffour Awuah, Minister of Employment and Labour Relations, directed the Controller and Accountant General to effect the changes starting from the January 2023 payroll.