The government pays cost of living (COLA) allowance to public sector workers
According to the Controller and Accountant General’s Department (CAGD), a total of GH485 million has been paid to public sector employees as a cost-of-living allowance (COLA) for the months of July and August.
After a lengthy strike, the government reached an agreement with organized labour in July 2022 to pay the COLA.
A statement from the Controller and Accountant General confirmed the payment.
1. The Controller and Accountant-General have paid the Cost of Living Allowance (COLA) to workers in Public Service Institutions in accordance with 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.
2. The COLA, equal to 15% (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 GH485,000,000.00 (four hundred and eighty-five million Ghana cedis).
The government and organized labour agreed on a 15% cost-of-living allowance for organized labour members.
Due to the country’s current economic situation, various worker unions, including the four teacher unions, the Ghana Medical Association, and the Public Sector Workers Union, among others, demanded that 20 per cent of their basic salaries be paid as a Cost of Living Allowance (COLA).
Negotiations dragged on for over two weeks, forcing CCT, GNAT, NAGRAT, and TEWU to go on strike to press their demands.
However, after a last-minute meeting, both parties agreed on a 15% COLA that will take effect on July 1, 2022.
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Reading out the terms of the agreement, Employment and Labour Relations Minister Ignatius Baffour Awuah stated, “We agreed with the labour 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.”
“We also agreed that all ongoing and threatened industrial actions will be called off immediately and that labour will return to work.”
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