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Employers Who Underpay Workers to Face Legal Action – Rashid Pelpuo Warns

  • Jan 30, 2025
  • 2 min read

On Thursday, January 30, 2025, during his vetting by Parliament's Appointments Committee, Labour Minister-designate Abdul-Rashid Hassan Pelpuo emphasized the government's commitment to enforcing minimum wage regulations. He warned that employers who fail to adhere to the established minimum wage will face legal consequences.


Underpaying Workers? Get Ready for Legal Trouble – Rashid Pelpuo Warns Employers
Underpaying Workers? Get Ready for Legal Trouble – Rashid Pelpuo Warns Employers

"Once a minimum wage is agreed upon, it applies universally across all organizations. Paying below this standard is unlawful. Offenders will be held accountable and prosecuted if found guilty," Pelpuo asserted.

He stressed that Ghanaian workers deserve fair compensation and that employers unable to meet the minimum wage requirements will be answerable to the law.


Pelpuo's statements come amid heightened national discussions on workers' rights and equitable pay. His firm position has garnered support from various stakeholders advocating for policies that protect workers, especially in the private sector.


Addressing the issue of frequent labor strikes, particularly in the public sector, Pelpuo noted that of the 27 industrial actions recorded in 2024, 21 occurred in the public sector, with 40% originating from the tertiary education sector.

To address these challenges, he outlined a strategy of active engagement with organized labor, adherence to established protocols, and collaboration with experienced labor experts and union leaders.


Pelpuo also highlighted the necessity of aligning wages with productivity, expressing support for transforming the Fair Wages and Salaries Commission into a "Bureau of Productivity and Fair Wages" to better synchronize earnings with output.


"It's essential to correlate production levels with compensation. Negotiations should consider both the quantity produced and the corresponding remuneration. This alignment is crucial," he explained.

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