The government of Ghana and Organised Labour have signed a Multi-Year Public Service Remuneration Agreement, providing for a 9% increase in total remuneration effective January 1, 2027, and a 10% increase in base pay across-the-board effective January 1, 2028. The agreement was negotiated at the Public Services Joint Standing Negotiating Committee (PSJSNC) between the government, represented by the Fair Wages and Salaries Commission (FWSC) and the Ministry of Finance, and Organised Labour comprising workers’ unions and institutions within the Public Service.
The 2-year framework, covering January 1, 2027 to December 31, 2028, aims to provide predictability and a stable environment for the transition from FWSC to the Independent Public Emoluments Commission (IPEC). The 2028 Base Pay was agreed considering current inflation of 5.2% and the government’s projection of 8%, with 2% more or less, for the period. The parties also agreed to review allowances to address distortions during the transitional period.
The agreement was signed by Dr George Smith-Graham, Chief Executive Officer of the FWSC, on behalf of the government, and Joshua Ansah, Secretary-General of the Trades Union Congress (TUC), on behalf of Organised Labour. The signing ceremony was witnessed by Dr Cassiel Ato Forson, Minister of Finance, and Thomas T. Musah, General Secretary of the Ghana National Association of Teachers (GNAT).
Dr Forson commended Organised Labour and the government negotiating team for their cooperation, understanding, and commitment to the national interest. He described the agreement as a historic milestone in Ghana's public service remuneration negotiations, adding that it is about more than salaries, but also protecting workers' incomes and helping the government plan and manage public spending responsibly.
Dr Smith-Graham noted that the negotiations were significant as they came at a critical period in the country's public sector compensation reform agenda, as the FWSC transitions to IPEC. He said the decision to pursue a 2-year salary agreement reflected the collective commitment to industrial harmony, predictability in public expenditure, income security for workers, and stability during this important institutional transition.
Mr Ansah said that with inflation currently at 5.3%, the 2027 base pay adjustment was above the prevailing inflation rate. However, he noted that the figure does not fully reflect the pressures workers face in meeting their daily needs. He added that the agreement represents progress in efforts to protect workers’ purchasing power, and that the parties would reconvene to reopen negotiations if inflation in 2028 exceeds 10% or substantially erodes purchasing power.
The agreement demonstrates that fair pay for workers and responsible management of public finances can go hand in hand, according to Dr Forson. The government has shown commitment to maintaining fiscal discipline while progressively improving the conditions of service of its employees. The parties have also agreed to consult quarterly on reforms during the transitional period.
Key points
- The agreement provides for a 9% increase in total remuneration in 2027 and a 10% increase in base pay across-the-board in 2028.
- The 2-year framework aims to provide predictability and a stable environment for the transition from FWSC to IPEC.
- The parties have agreed to review allowances to address distortions during the transitional period.
