Public Sector Workers Get 9% Pay Rise In 2027

Dr. Cassiel Ato Forson, Dr. George Smith-Graham and others at the signing ceremony

 

Public sector workers on the Single Spine Salary Structure (SSSS) will receive a 9% increase in total remuneration from January 1, 2027, under a new two-year agreement between the government and Organised Labour.

A statement issued by the Public Affairs Unit of the Fair Wages and Salaries Commission (FWSC) said the agreement was negotiated at the Public Services Joint Standing Negotiating Committee (PSJSNC).

The government was represented by the FWSC and the Ministry of Finance, while Organised Labour was represented by workers’ unions and institutions within Ghana’s public service.

The agreement establishes a remuneration framework covering January 1, 2027, to December 31, 2028, to provide predictability and stability during the transition from the FWSC to the Independent Public Emoluments Commission (IPEC).

Under the agreement, total remuneration will increase by 9% in 2027, comprising an 8-percentage-point increase in base pay across the board and a one-percentage-point increase in allowances under Conditions of Service.

For 2028, base pay will increase by 10% across the board, effective January 1, 2028. The adjustment will be calculated using the applicable base pay as of December 31, 2027.

The statement said the PSJSNC would reconvene to review the 2028 base pay if year-on-year inflation for December 2027 exceeded 16%, representing twice the 8% midpoint of the government’s inflation projection.

According to the Commission, the parties will use the transitional period to review allowances to address existing distortions. The government will also consult Organised Labour quarterly on reforms, while the FWSC will retain its lawful functions until any transfer to IPEC takes legal effect.

The agreement was signed on behalf of the government by the Chief Executive Officer of the FWSC, Dr. George Smith-Graham, and on behalf of Organised Labour by the Secretary-General of the Trades Union Congress (TUC), Bro. Joshua Ansah.

The Minister for Finance, Dr. Cassiel Ato Forson, and the General Secretary of the Ghana National Association of Teachers (GNAT), Thomas T. Musah, witnessed the signing.

Speaking at the ceremony, Dr. Forson commended Organised Labour and the government’s negotiating team for their cooperation, understanding and commitment to the national interest.

He described the agreement as a historic milestone in the country’s public service remuneration negotiations.

“For the first time, Government and Organised Labour have reached a two-year pay agreement. The agreement is more than salaries. It is about protecting workers’ incomes, giving families greater certainty, and helping Government plan and manage public spending responsibly,” he said.

“The government has demonstrated that fair pay for workers and responsible management of public finances can go hand in hand,” he added.

Dr. Smith-Graham said the negotiations were significant because they came at a critical period in the country’s public sector compensation reform agenda, particularly as the FWSC prepared to transition to the IPEC.

The statement explained that the decision to pursue a two-year salary agreement reflected a shared commitment to industrial harmony, predictable public expenditure, income security for workers and stability during the institutional transition.

Dr. Smith-Graham also praised the government and Organised Labour for demonstrating maturity, mutual respect and a willingness to compromise, as well as recognising the need to balance improvements in workers’ welfare with economic realities and fiscal sustainability.

The statement said the Commission’s objective of ensuring equal pay for work of equal value, fair rewards for productivity and a public sector compensation system that promotes equity, efficiency and national development remained unchanged as it transitioned towards becoming an independent commission.

For his part, Mr. Ansah said the 2027 base pay adjustment was above the prevailing inflation rate of 5.3%, but acknowledged that the agreement might not meet every expectation.

He said the agreement nevertheless represented progress in efforts to protect workers’ purchasing power, although the increase did not fully reflect the difficulties workers faced in meeting their daily needs.