Government, Labour Agree on Two-Year Pay Rise

The Government and Organised Labour have reached a landmark two-year salary agreement that will see public sector workers receive an eight per cent base pay increase in 2027 and a 10 per cent increase in 2028.

The agreement covers workers on the Single Spine Salary Structure (SSSS) and will take effect from January 1, 2027, to December 31, 2028.

According to a statement issued by the Fair Wages and Salaries Commission (FWSC), the 2027 adjustment includes an eight per cent across-the-board increase in base pay, along with an additional one percentage point for Conditions of Service, bringing the total remuneration increase for the year to nine per cent.

Two-Year Framework for Stability

The agreement was reached through negotiations at the Public Services Joint Standing Negotiating Committee (PSJSNC), involving representatives of Government, including the FWSC and the Ministry of Finance, as well as Organised Labour and public service unions.

The FWSC said the two-year arrangement is intended to provide greater predictability and stability during the transition from the Commission to the proposed Independent Public Emoluments Commission (IPEC).

The Commission also noted that measures had been built into the agreement to help protect workers' incomes against significant inflationary pressures.

Inflation Safeguards Included

Under the agreement, the 2028 base pay increase of 10 per cent will be applied across the board based on workers' salaries as of December 31, 2027.

The FWSC said the adjustment was determined after considering prevailing inflation levels and the Government's inflation projections for 2027 and 2028.

In a further safeguard, the PSJSNC will reconvene to review the 2028 adjustment if year-on-year inflation in December 2027 exceeds the midpoint of the Government's inflation projection by a factor of two.

Allowances and Reforms Under Review

The parties also agreed to review public sector allowances during the transition period to address distortions within the compensation system.

Additionally, Government is expected to hold quarterly consultations with Organised Labour on ongoing public sector reforms.

The FWSC stated that it would continue performing its statutory functions until any transfer of responsibilities to the IPEC takes legal effect.

Finance Minister Hails Historic Agreement

Minister for Finance, Dr Cassiel Ato Forson, described the deal as a significant achievement in Ghana's public sector wage negotiations.

"Today marks a historic milestone in Ghana's public service remuneration negotiations. For the first time, Government and Organised Labour have reached a two-year pay agreement."

He said the arrangement would help protect workers' incomes, provide greater certainty for families and improve the Government's ability to plan and manage public expenditure.

Labour Welcomes Progress

Chief Executive of the FWSC, Dr George Smith-Graham, said the agreement reflected a shared commitment to industrial harmony, predictable public spending and income security for workers during the institutional transition.

He noted that negotiators sought to strike a balance between improving workers' welfare and maintaining fiscal sustainability.

For his part, Trades Union Congress (TUC) Secretary-General Joshua Ansah said the 2027 base pay increase exceeds the current inflation rate, although he acknowledged the economic challenges confronting workers.

“We recognise, however, that this figure does not fully reflect the pressures workers face in meeting their daily needs.

“While the agreement may not meet every expectation, it represents progress in our efforts to protect workers' purchasing power.”

Source: GNA