According to the Controller and Accountant General’s Department (CAGD), cost-of-living allowance (COLA) payments totaling GH485 million have been made to public sector employees.
The government and organized labor reached a compromise on the payment of COLA in July 2022.
The Fair Wages and Salaries Commission and the leadership of the labor unions reached an agreement during a meeting to reduce the worker unions’ demand for a 20% base pay allowance to a 15% allowance.
According to the contract, the Controller and Accountant General has attested to the payment of the specified amount (GH485 million), which is effective retroactively (July and August).
Below is the Statement
GOVERNMENT PAYS COST OF LIVING (COLA) ALLOWANCE
1. Pursuant to the approval given by the Ministry of Finance on 1st August 2022, following the Agreement signed between Government and Organized Labour on 14th July 2022, the Controller and Accountant-General has paid the Cost of Living Allowance (COLA) to workers in Public Service Institutions.
2. The COLA which represents fifteen percent (15%) of the 2022 basic salary was paid for the months of July and August.
3. The total amount paid for COLA for the two months is Four Hundred and Eighty-Five Million Ghana Cedis (GH¢485,000,000.00).
Due to the nation’s current economic situation, the various worker unions, including the four teacher unions, the Ghana Medical Association, and the Public Sector Workers Union, among others, demanded payment of 20% of their basic salaries as Cost of Living Allowances (COLA).
Over the course of more than two weeks of negotiations, CCT, GNAT, NAGRAT, and TEWU were forced to take part in industrial action to press their demands.
However, following a crisis meeting, both parties agreed on a 15% COLA, which will become effective retroactively on July 1, 2022.
We agreed with the labor unions that the COLA will be paid at the rate of 15% of base pay, and that the effective date for the payment of the COLA will be July 1st 2022, said Employment and Labour Relations Minister Ignatius Baffour Awuah while reading out the terms of the agreement.
We also decided that all ongoing and threatened industrial actions would stop immediately and that workers would resume their jobs.