Inflation: Ghana introduces 15% living cost allowance for public workers

The government of Ghana says it has introduced a 15 per cent cost of living allowance (COLA) to help residents cope with the country’s harsh economy.

Kojo Oppong Nkrumah, minister of information, Ghana, disclosed this in a tweet on Friday.
Nkrumah said the decision was reached after consultations with the country’s organised labour and other stakeholders.
According to him, the allowance took effect on July 1 — the same day Ghana sought the support of the International Monetary Fund (IMF) for its economic crisis.
“Government and organised Labour have concluded negotiations for Cost of Living Allowance. A 15 per cent allowance has been agreed effective July 1. Government is keen on mitigating the impact of global challenges on the people of Ghana,” he said in a tweet.

The government agreed that COLA would be paid at a rate of 15 per cent of the base pay of public workers after negotiations between the government and organised labour concluded on Thursday evening.
Ghana is one of the low-income nations currently being battered by the effects of Covid-19 and the war between Russia and Ukraine.
Last month, Ghanaians thronged the streets of Accra in protests against skyrocketing energy costs and the newly imposed e-levy, which mandates them to pay a 1.5 percent tax for every electronic transaction they carry out.
Last week, President Nana Akufo-Addo asked Ken Ofori-Atta, finance minister, to commence formal engagements with IMF to secure support to address economic woes in the country.