Public sector workers in Ghana are set to receive a significant boost in their salaries following the directive from the Finance Ministry to implement a 23% pay increase negotiated between the government and organized labour last year.
The salary adjustment, covering the period from January to July of this year, aims to improve the welfare of government employees amid economic challenges and rising living costs.
According to the directive issued to the Controller and Accountant-General, the salary increment is to be applied retroactively from January, providing relief to workers who have awaited the agreed-upon raise.
Additionally, a further 2% adjustment is expected to be made to salaries from July to December of this year, reflecting ongoing efforts to address inflation and maintain parity with the cost of living.
The decision to increase salaries comes amidst concerns over rising taxes and the impact on workers’ purchasing power. Sources indicate that organized labour may push for a Cost-of-Living Allowance (COLA) to mitigate the effects of inflation and tax hikes.
If granted by the government, this would mark the fourth time such an allowance has been agreed upon since 2015, highlighting ongoing efforts to support workers’ financial well-being.
Looking ahead, organized labour and the government are poised to commence another round of salary negotiations from October this year, with discussions expected to cover the fiscal year 2025.
These negotiations will provide an opportunity for both parties to address evolving economic conditions and ensure that public sector workers receive fair compensation in line with prevailing market trends.
