How to calculate the 2023 30% base pay increase in Ghana
The increments will reflect on the payslip once the bill has been approved. Use the calculator in the article to know how much more you will receive.
Government of Ghana, after several weeks of deliberations has finally agreed to increase the base pay of single spine salary workers by 30%. The agreement was signed on 12th January, 2023. This increase will undoubtedly bring financial relief to many Ghanaian workers and their families.
In this article, we will discuss what this increase in base pay means for Ghanaians and how to calculate the 2023 30% base pay increase.
The 30% base pay increase
A base pay increase of 30% is a substantial amount and will lead to a significant financial boost for many workers. It is expected that this pay increase will affect the wages of single spine salary workers.
This is great news for Ghanaian workers as it will help boost their purchasing power and enable them to save more for the future. Even though it is not enough, this increase will help reduce wage inequality in Ghana and ensure that all workers receive compensations for their work.
How to calculate the 2023 30% base pay increase
First, workers need to determine their current base pay. This is the amount of money they are paid before any bonuses or other forms of compensation. After it has been determined, you can then be able to calculate your base pay increase. This can be done by multiplying your current base pay by 0.30. This will give them the amount of the 2023 30% pay increase.
For example, if a worker’s current base pay is GHS 1,000, then the 2023 30% increase would be 300 GHS. This means that their base pay would be GHS 1,300 after the 2023 30% base pay increase. This is the amount you will be getting before tax.
What you need to calculate your 30% base pay increament
Under a single spine structure, there are just two items that make up the total amount. The retention premium and the single spine salary are those. The 30% increase is calculated with these components in mind.
You can use the calculator below
2023 30% Salary Increase in Ghana Calculator
Is the 30% base pay increase enough?
The 30% base pay might not be enough but half a loaf is better than none as the saying goes. During the discussions, the required increase was not granted but rather, the government bargained for 30% which was later agreed. It will help ease some little burden on government workers compared to their previous salaries.
It is important to note that the 2023 30% base pay increase is only applicable to base pay and does not apply to bonuses or any other forms of compensation.
You must also know that, the 2023 30% base pay increase is only applicable to single spine salary workers. This means that those employed in the informal sector, such as domestic workers, will not benefit from this pay increase.