On May 1, 2022, at the May Day parade in Accra’s Black Star Square, Dr Anthony Yaw Baah, Secretary-General of the Trades Union Congress (TUC), urged the Ghanaian government to suspend all taxes and levies on petrol, diesel, and liquefied petroleum gas (LPG) until global crude oil prices and the cedi’s value stabilize. “This will bring down prices of fuel products and ease the burden on Ghanaians,” Baah stated, highlighting the ripple effect of high fuel prices—diesel at GH¢10–11 and petrol above GH¢9 per litre—on food and commodity costs, which eroded workers’ wages and living standards.
Economic Hardship and Wage Concerns
Baah emphasized the dire economic situation, noting that Ghana’s minimum wage of GH¢13.53 per day (GH¢365 monthly) fell below the international poverty line of $1.90 at 2022 exchange rates. “Salaries have lost over a third of their real value as prices of essential commodities… continue to increase,” he said, criticizing the “poor structuring” of the Single Spine Pay Policy (SSPP). The policy, implemented in 2010 to standardize public sector salaries, has widened pay disparities, with some junior officers earning more than seniors. Baah also highlighted pension inadequacies, particularly for those outside the Social Security and National Insurance Trust (SSNIT), with only 288,619 of 1.9 million elderly Ghanaians receiving pensions.
Government’s Response and Austerity Measures
President Nana Akufo-Addo, responding at the parade, outlined measures to counter the economic fallout from the Covid-19 pandemic, which caused a GH¢13.1 billion revenue loss and GH¢142 billion in unbudgeted expenditure. He defended the controversial Electronic Transaction Levy (E-Levy), passed in March 2022, as essential for revenue mobilization, despite public opposition. “These measures… are critical to achieving micro-economic stability,” Akufo-Addo said, announcing a 30% cut in discretionary spending, a 50% reduction in fuel coupons, and salary cuts for political appointees. He dismissed claims of government insensitivity, promising to protect workers’ livelihoods and revive the private sector through improved credit access and reduced business costs.
Single Spine Review and Broader Context
Addressing wage concerns, Akufo-Addo noted that a Technical Committee, formed on April 26, 2022, post-National Labour Conference, was reviewing the SSPP to address inequities. The TUC’s demands echoed earlier calls in March 2022 for fuel tax suspension, estimating a 15% price drop, as fuel costs drove inflation to 19.4% in March 2022, per the Ghana Statistical Service. The government’s partial concessions, like suspending the Price Stabilisation Levy in 2021, were deemed insufficient by the TUC and the Minority in Parliament, who pushed for broader tax relief. The May Day theme, “Protecting Jobs and Incomes in the Era of Covid-19 Pandemic and Beyond,” underscored the urgency of addressing economic pressures.
Ongoing Challenges and Implications
As of August 2025, Ghana’s economic challenges persist, with inflation at 20.2% in July 2025 and the cedi depreciating 24.3% against the dollar in 2024, per the Bank of Ghana. The TUC’s push for fuel tax suspension remains relevant, as fuel prices continue to strain workers, with petrol at GH¢14.99 per litre in mid-2025, per Citi Newsroom. The SSPP review is ongoing, but progress is slow, fueling labor unrest. “Suspending taxes… will demonstrate to Ghanaians that our government is sensitive to the plight of the people,” Baah reiterated in 2022, a call that resonates as workers demand living wages amid rising costs. The government’s austerity measures and E-Levy face criticism for burdening citizens, while the TUC’s advocacy highlights the need for structural reforms to stabilize Ghana’s economy.
