Adnan Adams Mohammed
President John Mahama’s direct involvement in public sector base pay negotiation has yielded a 10 percent increment for this year.
The Tripartite Committee, made up of representatives from the government, employers, and organized labour associations, agreed to peg the minimum wage at GH₵19.97 as against the 2024 figure of GH₵18.15.
Although, public sector workers have received the news with excitement, some labour experts have clashed with each other on the wage pay adjustment, opposing each other. Austin Gamey has described the 10% wage increase for public sector workers as excessive, warning that it could exacerbate inflationary pressures.
“The issue is base-pay, and normally it should be based on productivity but we are yet to get there as a nation. We are so far not practicing the performance management system here in Ghana fully”, the labour consultant indicated in an interview, last week, reacting to the wage adjustment announcement.
“The private sector responds well but the public sector doesn’t respond well. So, for fairness, the 10% is about the best for now. I would have preferred something else,” he stated.
He further emphasized that even a 1% adjustment in public sector wages could push the economy into a higher inflationary bracket, ultimately affecting everyone, including the beneficiaries of the wage increase.
“I would have preferred it lower. Because even a 1% adjustment on the public sector wage takes us to another inflationary bracket and that comes back to bite all of us including them,” he stated.
While these negotiations are a late but necessary development, many believe the current wage falls far short of what is needed. Before the announcement was made, a former Secretary-General of the Trades Union Congress, Dr. Yaw Baah – speaking at the opening of his labour consultancy firm, the Kaizen Institute for Labour Economics, in Tema, last week, – had called on the Tripartite Committee to negotiate a better deal for public sector workers regarding the minimum wage.
Mr Baah expressed strong concern about the 2024 minimum wage of GH¢18.15 (just over US$1), describing it as insufficient and insulting for public sector employees. He advocates for a substantial wage increase to more accurately reflect the contributions of these workers.
“This is not the Ghana we wanted to build. This is not the Ghana Kwame Nkrumah envisioned. After 68 years of independence, the people of Ghana are working eight hours for just one dollar. This is a big shame. I hold both the government and employers accountable for keeping the minimum wage so low,” Dr. Baah stated.
“It is simply wrong, and I hope that in these negotiations, employers will realize the gravity of this issue.”
In addition to Baah’s concerns, Chairman of the National Development Planning Commission, Dr. Nii Moi Thompson highlighted the importance of training public sector workers to boost their productivity.
“We need to focus on training for workers, entrepreneurs, and those managing the public sector. Fortunately, the President has appointed a minister responsible for public sector reforms. I am scheduled to meet the minister soon to strategize on these reforms,” Thompson said.
The Kaizen Institute for Labour Economics, founded by Dr. Yaw Baah in 2024, is dedicated to supporting unions, employers, and government efforts to improve industrial relations, social partnership, and labor market outcomes. The institute places a special focus on employment, productivity, and wages.
