The Private Universities Students Association of Ghana (PUSAG) has praised government for increasing the daily minimum wage by nearly 17 per cent, saying it is “very much fascinated and gratified” by the negotiation proceedings.

Leaderships of government, Ghana Employers Association, Trades Union Congress for Organised Labour had agreed that the minimum wage should be pegged at 16.7 per cent and must be exempted from tax.

The increment means that the daily minimum wage would now be increased from GH?6.00 to GH?7.00.

The Public Services Joint Standing Negotiating Committee had also reached an agreement that the current basic single spine salary structure be pushed up by 13 per cent.

“We therefore hold a strong conviction that both government and the leadership of labour deserve commendation for not dragging their feet over this seemingly contentious matter as has been the case in previous years,” PUSAG said in a statement issued in Accra on Tuesday and copied to Ghana News Agency.

“PUSAG is very much fascinated and gratified by the alacrity at which the necessary negotiations were held which eventually culminated in this rise,” the statement jointly signed by Richard Odame, International Relations Director and Mohammed Adam Sukparu, National President of PUSAG said.

It said PUSAG recognised that the increment is not substantially enough to commensurate the current exacerbating living condition of the Ghanaian worker.

However, “we wish to posit that if one takes due cognisance of the current severe economic crisis that is bedeviling us…and the overwhelming expectations on government for developmental projects…then it is without incongruity if we suggest that the workers should be contend with this ‘marginal increase’ in the larger interest of the nation,” it said.

“We believe that as little as it might seem, it would still go a long way to cushion them against the prevailing demand in the country,” it added.

PUSAG expressed worry that government emoluments hovering about 83 per cent of its internal revenue is at the detriment of other equally compelling demands like putting up the necessary infrastructure and making statutory payments.

It questioned: “For how long is this trend going to continue?”

It urged government to do more in coming out with pragmatic measures to stabilise the economy in order to better the living conditions of the ordinary Ghanaian worker “who unjustifiably bear the brunt of financial and economic indiscipline on the part of government.”