Ghana’s business community should be bracing for tighter operating margins after the Public Utilities Regulatory Commission (PURC) announced new utility tariffs that labor groups say will wipe out the upcoming 9% wage increase for 2026.
The PURC approved a 9.8% increase in electricity tariffs and 15.9% for water, both taking effect on January 1, 2026, the same day the new national minimum wage and base pay adjustment are scheduled to kick in.
The Trades Union Congress (TUC) has warned that the timing and scale of the increases will place heavy pressure on workers and businesses already struggling with rising production costs.
According to the TUC, the new tariffs are “worse than robbing Peter to pay Paul,” arguing that the increases have completely eroded the 9% wage adjustment, leaving workers with no real income gain. The union insists that any business expecting a productivity boost from the wage increment will likely face the opposite, as workers struggle to manage stagnant disposable incomes.
“In 2025, the government granted a wage increase of 10% and increased electricity tariffs cumulatively by more than 18%. As workers bemoan the 9% wage increase for 2026 in the light of the prevailing cost of living, the least they expected was for the government to spring a surprise on them with increases in prices of utilities,” the TUC statement said.
Beyond the household level, manufacturers, retailers, service providers and SMEs are expected to face increased operational costs from the higher utility charges. This comes at a time when many firms are still recovering from earlier electricity tariff increases, currency pressures and elevated borrowing costs.
The combined effect of the wage-tariff clash could reduce consumer demand in early 2026, affecting sectors such as retail, hospitality, transport and small-scale manufacturing. Lower purchasing power typically translates into slower sales growth, a risk businesses now have to factor into their first-quarter planning.
The TUC which issued a statement shortly after the PURC’s tariff announcement is demanding that government returns to the negotiating table to revise wages upward to compensate for the tariff shock. Without this adjustment, the union says it will mobilise workers to resist what it calls “insensitive increases” in utility prices.
Organised Labour is expected to outline a broader response plan at a press conference on December 8, 2025, which could include mass action capable of disrupting business operations depending on the outcome.
For now, businesses must adjust their cost projections for 2026, with analysts warning that profit margins and investment decisions could tighten if wage dissatisfaction, consumer pressure and utility costs converge in the new year.
