Ghana is currently engaged in an important national conversation about the proposed 24-hour economy. The idea is built around expanding production, extending business operations, creating employment and making better use of Ghana's youthful population.
But beneath this discussion lies a more fundamental question that deserves serious attention:
How much is a Ghanaian worker's time worth?
Before Ghana asks its workers to participate in an economy that operates around the clock, perhaps the country must first establish a modern and transparent system for valuing and compensating working time.
This is where the time-rate payment system deserves national attention.
The issue is not that Ghana's traditional daily-payment system is entirely wrong, nor that the 24-hour economy has no merit. Rather, the argument is that economic transformation should begin with the proper valuation of labour effeorts.
A country cannot sustainably increase production simply by increasing the number of hours people spend at work. It must increase the value created per hour of work.
What Is the Time-Rate Payment System?
The time-rate system is a method of paying employees according to the amount of time they work.
The employee may be paid: per hour; per day; per week; or per month.
The critical feature is that remuneration is connected to a defined period of working time.
If the worker is required to work beyond the normal eight hours, the additional hours can then be identified and treated according to applicable overtime arrangements.
This is different from a situation where a worker is simply told:You will receive GH¢50 for the day, without a clear understanding of how many hours constitute the working day or how additional hours will be treated.
The difference may appear small, but it has significant implications for labour protection, payroll transparency and productivity.
GHANA'S BY-DAY PAYMENT CULTURE
Across Ghana, particularly in the informal economy, many workers are paid on a daily basis and the formal sector accumulates everything and pays at the end of the month.
A construction worker may receive a fixed amount for a day's work. A casual labourer may receive a daily wage. A domestic worker, farm worker or artisan may also negotiate a daily amount.
There is nothing inherently wrong with daily payment.
Indeed, a daily wage is itself a form of time-based remuneration.
The problem arises when the daily rate is disconnected from clearly defined working hours.
Suppose a worker is paid GH¢80 per day. If the working day is eight hours, the implied rate is:
GH¢8.00 per hour.
But what happens if the employee works 10, 12 or 14 hours?
If the employee still receives GH¢80, the effective hourly value of the worker's labour falls dramatically.
The worker has therefore provided four additional hours of labour without a corresponding increase in the daily payment.
This is one of the reasons why Ghana needs to have a more serious national discussion about the value of time in employment.
WHAT CAN GHANA LEARN FROM AMERICA?
The United States provides a useful example of a more formalised approach to working time.
Under the federal Fair Labor Standards Act, covered non-exempt employees must generally receive at least the applicable minimum wage for all hours worked and overtime pay of at least one-and-a-half times the regular rate for hours worked above 40 in a workweek.
Importantly, American labour law does not necessarily require every worker to be paid strictly by the hour.
A worker may be paid by the day, week, salary or even by output. But where applicable labour protections apply, the employer must still account for the employee's working time when determining compliance with wage and overtime requirements.
This is an important lesson for Ghana.
The method of payment should not determine whether a worker's additional labour is recognised.
Whether a person is paid by the day, week or month, there should be clarity about the employee's normal working hours and what happens when those hours are exceeded.
WHAT ABOUT EUROPE?
Europe does not operate under one single labour system. Each European country has its own employment laws, wage structures and collective bargaining arrangements.
Nevertheless, European Union rules place considerable emphasis on transparency regarding employment conditions, including remuneration, working hours and arrangements concerning overtime. EU legislation also establishes a framework for adequate minimum wages through statutory systems or collective bargaining, depending on the country.
The important lesson for Ghana is therefore not to copy Europe or America blindly.
Rather, Ghana can learn from the principle that:
Working time should be clearly defined, recorded and connected to fair remuneration.
THE PROBLEM WITH PAYING FOR THE DAY WITHOUT VALUING THE HOUR
Consider two workers.
Worker A works eight hours and receives GH¢200.
Worker B works twelve hours and also receives GH¢200.
Both have technically been paid GH¢200 for the day.
But have they contributed the same amount of labour?
Clearly not.
Worker B has provided four additional hours.
The payment system therefore needs to distinguish between the normal working period and additional working time.
This is particularly important if Ghana intends to encourage longer operating hours.
A 24-hour economy without a corresponding framework for valuing additional working time could create a situation where businesses operate longer while workers simply work longer for the same basic remuneration.
That should not be the objective.
GHANA DOES NOT NEED PEOPLE TO WORK 24 HOURS A DAY
This point must be clearly understood.
A 24-hour economy does not mean individual workers should work for 24 hours.
A functioning 24-hour economy should operate through shifts.
For example:
Shift 1: 6:00 a.m.–2:00 p.m.
Shift 2: 2:00 p.m.–10:00 p.m.
Shift 3: 10:00 p.m.–6:00 a.m.
Different workers can cover different shifts.
But the moment an economy adopts such a structure, the question of working hours, overtime, night work, rest periods and compensation becomes even more important.
Therefore, Ghana's discussion about a 24-hour economy should naturally lead to a discussion about modern labour remuneration.
THE REAL QUESTION SHOULD BE: HOW MUCH VALUE DOES ONE HOUR CREATE?
Perhaps Ghana needs to change the way it thinks about productivity.
Instead of asking: “How many hours are Ghanaians working?”
we should ask:“How much economic value is Ghana producing per hour worked?”
This is a much more important question.
A worker can spend 12 hours at work but achieve less than another worker who works eight hours with better equipment, technology and management.
Therefore, longer working hours do not automatically produce higher productivity.
Productivity depends on:technology; skills; management;infrastructure;
access to finance;reliable electricity; transportation;
workplace organisation;
motivation; and fair remuneration.
THE CASE FOR A MODERN TIME-RATE SYSTEM IN GHANA
A properly structured time-rate system could offer several benefits.
1. Greater income transparency
Workers would know the relationship between their working hours and remuneration.
2. Better protection against excessive working hours
Employers and employees would have a clearer basis for determining when normal working hours have been exceeded.
3. More transparent overtime calculations
Additional hours could be properly identified and compensated according to applicable laws and agreements.
4. Better payroll management
Employers could more accurately calculate labour costs.
5. Greater accountability
Working hours could be recorded through attendance systems, biometric systems or digital payroll platforms.
6. Better preparation for shift work
As Ghana expands shift-based production, clearly defined time rates would become increasingly useful.
BUT TIME-RATE PAYMENT MUST NOT KILL PRODUCTIVITY
There is an equally important warning.
Ghana should not introduce a system where workers are paid simply for being physically present.
Time at work is not the same thing as productivity.
A worker should be expected to perform the duties for which he or she is employed.
This is why the most effective system may be a hybrid model.
Basic time-rate pay + overtime + appropriate allowances + productivity incentives
For example, an employee could receive a guaranteed basic rate for normal working hours and additional rewards for measurable productivity, quality and performance.
This gives the worker security while giving the employer an incentive to reward efficiency.
NIGHT WORK DESERVES SPECIAL ATTENTION
Night work can impose additional challenges on workers.
Transportation may be more difficult. Security concerns may be greater. Family responsibilities may be disrupted. Sleep patterns can also be affected.
Therefore, if Ghana wants businesses to operate throughout the night, it must ensure that night workers are adequately protected and appropriately compensated under applicable employment rules.
A 24-hour economy should never become an excuse for 24-hour exploitation.
THE 24-HOUR ECONOMY SHOULD BE BUILT ON A FAIR LABOUR SYSTEM
There is no reason for Ghana to see the time-rate system and the 24-hour economy as enemies.
In reality, a properly designed time-rate system could become one of the foundations of a successful 24-hour economy.
If factories operate three shifts, workers need clearly defined hours.
If hospitals operate continuously, staff need clearly defined shifts.
If transportation operates around the clock, drivers need clearly defined working periods and rest arrangements.
If businesses operate at night, workers need to know how their night work is compensated.
Therefore:
The 24-hour economy needs a modern time-rate framework.
WHAT GHANA SHOULD CONSIDER
Ghana's policymakers, employers and organised labour could consider a number of reforms.
First: Make working hours explicit
Employment contracts should clearly state normal working hours.
Second: Establish transparent hourly equivalents
Even where employees are paid monthly, their basic remuneration should have a clear relationship with working time where appropriate.
Third: Strengthen overtime administration
Additional working hours should be properly recorded and treated according to applicable law and employment agreements.
Fourth: Improve electronic time recording
Modern businesses can use digital attendance systems to reduce disputes over hours worked.
Fifth: Protect workers
Workers should not be forced into excessive working hours simply because they receive a daily or monthly salary.
Sixth: Reward productivity
Where output can be objectively measured, employers should have room to reward exceptional performance.
Seventh: Improve workplace productivity
Government should focus on electricity, roads, transport, technology, skills and access to capital so that workers can produce more within normal working hours.
GHANA'S REAL CHALLENGE IS PRODUCTIVITY, NOT THE CLOCK
The debate over the 24-hour economy risks becoming too focused on the clock.
The clock is not the problem.
The real issue is what Ghana produces during the hours available to it.
A country can operate 24 hours and remain poor if its production is inefficient.
Another country can operate fewer hours and generate enormous economic value because its workers have better technology, infrastructure, skills and systems.
Therefore, Ghana's economic ambition should be to increase productivity per worker and productivity per hour.
CONCLUSION: VALUE THE HOUR BEFORE EXTENDING THE HOURS
Ghana certainly needs economic growth, more jobs, stronger industries and greater production.
But the country must be careful not to equate longer working hours with economic transformation.
Before asking workers to participate in an increasingly extended economy, Ghana should ensure that the value of their time is clearly understood and fairly compensated.
The time-rate system provides an opportunity to do exactly that.
It can give workers a transparent basic rate, provide a foundation for overtime calculations, support shift work and improve payroll accountability—while still allowing productivity incentives to reward exceptional performance.
The objective should not be to make Ghanaians work endlessly.
The objective should be to make every hour of Ghanaian labour more productive and more valuable.
Ghana does not simply need a 24-hour economy. Ghana needs an economy where every hour counts.
If a worker gives eight hours, those eight hours should have a clearly understood economic value.
If the worker gives ten hours, the additional two hours should not disappear into an undefined “daily rate.”
If the worker works at night, the conditions and compensation should be clear.
And if the worker produces exceptional value, there should be mechanisms to reward that performance.
Before we extend the clock, let us first learn to value the hour.
That may be the more fundamental step towards building a productive, fair and prosperous Ghana.
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