Government and Organised Labour sign two-year public sector pay agreement

The Government of Ghana and Organised Labour have signed a two-year public service remuneration agreement, covering 2027 and 2028. The agreement grants workers on the Single Spine Salary Structure an overall remuneration increase of 9 per cent in 2027 and a 10 per cent base pay increase in 2028. This development is expected to provide predictability in workers' remuneration and support the transition from the Fair Wages and Salaries Commission to the Independent Public Emoluments Commission.

The agreement, negotiated under the Public Services Joint Standing Negotiating Committee, takes effect from January 1, 2027, and runs until December 31, 2028. Under the agreement, base pay will increase by 8 per cent across the board in 2027, with an additional 1 per cent provision for conditions of service. In 2028, base pay will rise by 10 per cent across the board, calculated on the applicable base pay as of December 31, 2027.

The agreement includes an income-protection provision, which allows the negotiating committee to reconvene and review the 2028 base pay if December 2027 year-on-year inflation exceeds 16 per cent. This provision is twice the 8 per cent midpoint of the government's inflation projection. The parties have also agreed to review allowances to address existing disparities.

The government will consult Organised Labour quarterly on reforms, while the Fair Wages and Salaries Commission will retain its lawful functions until any transfer of responsibilities to the Independent Public Emoluments Commission takes legal effect. The agreement was signed on behalf of the government by the Chief Executive of the Fair Wages and Salaries Commission, Dr George Smith-Graham.

The agreement was signed on behalf of Organised Labour by the TUC Secretary-General, Joshua Ansah. Dr Cassiel Ato Forson, the Finance Minister, described the agreement as a historic milestone, noting that it was the first time the government and Organised Labour had reached a two-year pay arrangement. He said the agreement goes beyond salaries by protecting workers' incomes.

The agreement provides families with greater certainty and helps the government manage public spending responsibly. Joshua Ansah said the 2027 base pay adjustment was above the prevailing inflation rate, although he acknowledged that workers continued to face cost-of-living pressures. He described the agreement as progress towards protecting purchasing power.

Both parties reaffirmed their commitment to industrial harmony, improved productivity, and a fairer public service remuneration system. The signing ceremony was witnessed by Dr Forson and General Secretary of the Ghana National Association of Teachers, Thomas T. Musah. The agreement reflects a shared commitment to industrial harmony, predictable public expenditure, and workers' income security.

Key points

• The agreement grants workers on the Single Spine Salary Structure a 9 per cent overall remuneration increase in 2027 and a 10 per cent base pay increase in 2028.
• The agreement takes effect from January 1, 2027, and runs until December 31, 2028.
• The parties have agreed to review allowances to address existing disparities.