Labour Analyst, Austin Gamey, has called on the Ministry of Finance and the Ministry of Labour, Jobs, and Employment to work together to develop a fair and sustainable compensation system that addresses the concerns of taxpayers and workers alike.
Indicating that such a move would be a significant step towards addressing longstanding challenges in Ghana’s salary administration system.
This follows plans by the Fair Wages and Salaries Commission to introduce a new public sector pay policy by October 2026.
The proposed policy is expected to pave the way for the establishment of an Independent Emoluments Commission that would determine salaries across public sector institutions and replace ad hoc political salary adjustments with a rules-based compensation framework.
Mr. Gamey said poor salary administration remains one of the country’s most persistent labour challenges and has contributed significantly to recurring disputes over remuneration in the public sector.
Mr. Gamey stressed the need for greater public understanding of the details of the policy and how it would be implemented.Politics commentary
“The most painful issue confronting Ghana today is poor salary administration. We have lived with this challenge for many years, and it appears we have not been able to find a common solution that satisfies everyone,” he stated.
The labour expert argued that Ghana’s current remuneration system relies heavily on factors such as inflation and the cost of living, rather than productivity and performance, which he believes undermines efficiency in both the public and private sectors.
“We have inherited an old salary structure that does not adequately promote paying people based on productivity or their contribution to the growth of an institution or the economy,” he explained.
Mr. Gamey pointed to provisions within Ghana’s labour laws that require employers to establish clear performance targets and key performance indicators (KPIs) for workers, while also providing the necessary tools and support to achieve those targets.
“Our labour laws require employers to set targets and performance indicators for employees, while workers are also expected to enhance productivity. Ultimately, remuneration should be linked to productivity and the value of services rendered,” he said.
He further emphasised that all forms of compensation represent a cost to employers and must therefore be justified by measurable performance and output.
According to him, any successful salary administration framework must ensure that remuneration reflects productivity levels in both the public and private sectors.
