Ghana’s economic recovery must now translate into better living conditions for workers, with the government’s latest public-sector salary agreement offering an opportunity to improve incomes while protecting the country’s financial stability.
Finance Minister Dr Cassiel Ato Forson has reaffirmed the government’s commitment to workers’ welfare following the conclusion of a two-year remuneration agreement with organised labour.
Under the agreement, public-sector workers will receive a 9 per cent increase in total remuneration from January 1, 2027. This comprises an 8-percentage-point increase in base pay and an additional 1 percentage point allocated to conditions of service.
Workers will receive a further 10 per cent across-the-board increase in base pay in 2028. The agreement also provides for a review of the 2028 adjustment if inflation in December 2027 reaches an agreed trigger.
Dr Forson said the settlement recognises the contribution of public-sector workers to maintaining essential services and supporting Ghana’s economic recovery.
“The agreement, as has been signed, recognises workers’ contribution to Ghana’s economic recovery. Workers’ dedication has helped sustain public service and support Ghana’s progress,” he said.
“Their welfare must remain central as we consolidate the recovery we have achieved so far,” he added.
However, the impact of the agreement will ultimately depend on whether the salary increases translate into meaningful improvements in workers’ purchasing power.
Although declining inflation and improving economic indicators point to greater stability, many households continue to struggle with the cost of food, transport, rent, education, healthcare and utilities. Inflation falling means prices are rising more slowly; it does not necessarily mean the cost of living has returned to previous levels.
The government must therefore ensure that workers’ incomes keep pace with the cost of living. If inflation remains below the rate of salary increases, employees could enjoy some improvement in purchasing power. But a renewed rise in prices could quickly erode those gains.
The provision for reviewing the 2028 adjustment is important because it allows the parties to reconsider the increase if economic conditions change significantly.
At the same time, the government must ensure that the agreement does not place additional pressure on public finances. Public-sector compensation is a major and recurring government expenditure, making it essential for salary commitments to be supported by sustainable revenue.
Dr Forson said the negotiations took into account the need to protect workers’ incomes while maintaining fiscal discipline and industrial stability.
“Workers deserve commitment that government can honour. Fiscal sustainability helps us meet our obligation to workers while providing essential public service and sustaining the economic recovery,” he said.
The challenge is to strike a balance between fair compensation and the government’s ability to meet its obligations without increasing borrowing, accumulating arrears or cutting essential public investment.
The allocation towards conditions of service also highlights the need to address workers’ welfare beyond basic salaries. Allowances, pensions, occupational safety, professional development and access to the tools needed to perform effectively all influence working conditions.
Plans to review selected allowances could help address disparities across public institutions, particularly where employees performing comparable duties receive different benefits. However, the process must be transparent and guided by clear principles to prevent new inequalities.
The proposed independent public remuneration commission could help establish a more consistent compensation system. Its effectiveness will depend on its independence, access to reliable payroll information and ability to recommend fair salaries within the government’s financial capacity.
The timely payment of salaries and pension contributions will also be crucial to building confidence in the agreement.
Dr Forson has disclosed that the government paid more than GH¢4.40 billion towards obligations involving the Social Security and National Insurance Trust (SSNIT) and second-tier pension schemes. He has also reported releases to statutory funds supporting healthcare, education, roads and local development.
These payments are important because workers’ retirement security depends on pension contributions being transferred to the appropriate funds promptly. Delays can undermine long-term financial security even when monthly salaries are paid in full.
Earlier in 2026, the government reported spending GH¢48.80 billion on public-sector compensation, including obligations to SSNIT and second-tier pension schemes.
Regular publication of compensation expenditure, pension transfers and outstanding arrears by the Ministry of Finance would help organised labour and the public assess whether government commitments are being met.
Beyond remuneration, the agreement presents an opportunity to strengthen productivity across the public sector. Fair salaries should go hand in hand with efficient institutions, reliable public services, effective performance management and continuous training.
Digitalisation and improved work processes can help employees deliver services more efficiently, while clearer promotion systems and career progression opportunities can improve morale. Productivity reforms should focus on equipping workers to perform better rather than using efficiency as a justification for arbitrary job losses.
The impact of Ghana’s economic recovery must also extend beyond public-sector employment. Private-sector and informal workers face their own financial pressures, while businesses continue to contend with operating costs, access to credit and weak consumer purchasing power in some areas.
Government policies that improve access to affordable financing, ensure reliable energy, provide predictable taxation and support business expansion will be important in creating jobs and improving incomes across the economy.
The national minimum wage must also remain responsive to changing living costs to prevent lower-income workers from falling further behind.
Dr Forson’s commitment to placing workers’ welfare at the centre of the recovery therefore establishes an important test for the government’s economic policies.
The salary adjustments for 2027 and 2028 provide a measure of certainty for public-sector employees, while the inflation review mechanism offers some protection against changing economic conditions. But the agreement’s success will depend on timely implementation, sustainable financing and continued efforts to contain inflation.
Ultimately, Ghana’s recovery must be measured by more than improving economic indicators. Its real value will be seen when workers can afford essential goods and services, save for emergencies, secure their retirement and experience greater financial stability.
For the government, the next task is to ensure that the gains from economic recovery translate into tangible improvements in the lives of the people who have helped sustain the country’s public services.
