Government, organised labour sign 2-year public service remuneration agreement for 2027-2028

Government and Organised Labour today signed a historic Multi-Year Public Service Remuneration Agreement for the 2027 and 2028 fiscal years for workers on the Single Spine Salary Structure (SSSS). The Government and Organised Labour negotiated the Agreement at the Public Services Joint Standing Negotiating Committee (PSJSNC), with the Government represented by the Fair Wages and Salaries Commission (FWSC) and the Ministry of Finance, and Organised Labour represented by workers’ unions and institutions within Ghana’s Public Service.

HIGHLIGHTS OF THE AGREEMENT 1. Two-Year Framework: A remuneration framework effective January 1, 2027, to December 31, 2028, to provide predictability and a stable environment for the transition from FWSC to the Independent Public Emoluments Commission (IPEC). 2. For 2027: Increase in total remuneration of 9% effective January 1, 2027; of this, 8 percentage points for base pay across -the-board and 1 percentage point for Conditions of Service. 3.

For 2028: Increase of 10% across-the-board base pay effective January 1, 2028, calculated on the applicable base pay at December 31, 2027. 4. Income Protection: The 2028 Base Pay was agreed considering current inflation of 5.2% and Government’s projection of 8%±2% for 2027 and 2028. If year-on-year inflation for December 2027 overshoots the midpoint of 8% by a factor of two (2), the PSJSNC shall reconvene to review the 2028 Base Pay. 5.

Reforms: Parties shall use the transitional period to review allowances to address distortions, and Government shall consult Organised Labour quarterly on reforms. FWSC shall retain its lawful functions until any transfer to IPEC takes legal effect. The Agreement was signed on behalf of Government by Dr George Smith-Graham, Chief Executive of FWSC and on behalf of Organised Labour by Bro.

Joshua Ansah, Secretary-General of TUC, and witnessed by Hon. Dr Cassiel Ato Forson (MP), Minister for Finance and Mr Thomas T. Musah, General Secretary, GNAT. Speaking at the signing ceremony, the Minister for Finance, Dr Cassiel Ato Forson commended organised labour and the government negotiating team for their cooperation, understanding and commitment to the national interest.

“Today marks a historic milestone in Ghana’s public service remuneration negotiations. For the first time, Government and Organised Labour have reached a two-year pay agreement.” The agreement, he said “is about 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.” The Chief Executive of Fair Wages and Salaries Commission, Dr George Smith-Graham said the negotiations have been particularly significant because they come at a critical period in Ghana’s public sector compensation reform agenda, as we transition from the FWSC to IPEC.

He explained that the decision to pursue a two-year salary agreement reflects our collective commitment to industrial harmony, predictability in public expenditure, income security for workers, and stability during this important institutional transition. He praised both Government and Organised Labour for demonstrating maturity, mutual respect, compromise and a shared understanding of the need to balance improvements in workers’ welfare with the country’s economic realities and fiscal sustainability.

“We recognise the sacrifices of Ghanaian public sector workers and their invaluable contributions to national development. Equally, we acknowledge Government’s responsibility to maintain fiscal discipline while progressively improving the conditions of service of its employees.” As the FWSC moves towards IPEC, he said the Commission’s ultimate objective remains clear: equal pay for work of equal value, fair reward for productivity, and a public sector compensation system that promotes equity, efficiency and national development.

The Secretary-General of TUC, Joshua Ansah, said that with inflation currently at 5.3 per cent, the 2027 base pay adjustment is above the prevailing inflation rate. “We recognise, however, that this figure does not fully reflect the pressures workers face in meeting their daily needs. While the agreement may not meet every expectation, it represents progress in our efforts to protect workers’ purchasing power.” He said it was also agreed that, should inflation in 2028 exceed 10% or reach a level that substantially erodes purchasing power, the parties will reconvene to reopen negotiations.

“Hardworking Ghanaian workers deserve fair pay, equitable conditions of service and protection for their purchasing power”, he said. The parties reaffirmed their commitment to promoting industrial harmony and improving productivity in the Public Service.