Here is what you need to know about COLA-When and how it is paid.
COLA stands for Cost of Living Allowance. It is given to government employees as short-term relief. When the government pays COLA, it stops as soon as a salary increase is made.
The truth is that, given the state of the economy, the Ghanaian government would not be able to increase workers’ base salaries by 20% while still paying SSNIT and professional allowance. Therefore, asking for temporary respite in the form of a COLA is the wise and reasonable thing a worker can demand.
People should be aware that the COLA, when paid by the government, will continue to be paid until there is a pay raise. For instance, the COLA will continue to be paid until salaries are increased, even if the government chooses against raising wages due to International Monetary Fund (IMF) Conditions.
Some past governments paid COLA for three years during their rule without increasing wages. The previous administration instituted it sometime in 2014 or 2015, but it was removed as soon as a pay increase occurred.
The COLA won’t last for long, and the IMF’s conditions will have more of an impact on employment than salary increases.