Minority Slams 9% Public Sector Salary Increase, Demands Urgent Review

The Minority Caucus on Employment, Labour Relations and Pensions in Parliament has strongly criticised the newly signed public sector salary agreement for 2027 and 2028, describing the proposed 9 per cent remuneration increase for 2027 as an insult to Ghanaian workers.

The caucus says the agreed salary adjustments do not reflect the economic realities confronting public sector employees, particularly the rising cost of living and the increasing financial burden on households.

According to the Minority, workers continue to grapple with successive increases in electricity and water tariffs, transport fares, rent, food prices and other essential commodities, making the proposed salary increment inadequate to meet their everyday needs.

In a statement issued on October 30 and signed by Mavis Nkansah Boadu, Ranking Member of the Committee on Employment, Labour Relations and Pensions, the caucus expressed shock and disappointment over the Multi-Year Public Service Remuneration Agreement finalised on October 28.

Under the agreement, public sector workers are expected to receive an 8 per cent increase in base pay, together with an additional 1 per cent adjustment in conditions of service, bringing the total remuneration increase for 2027 to 9 per cent.

For 2028, the agreement provides for a 10 per cent increase in remuneration.

However, the Minority argues that the adjustments fall short of what workers deserve, considering the prevailing economic conditions and the growing cost of maintaining their households.

It warned that the proposed increases could further weaken the purchasing power of public sector employees, particularly low-income earners who are already struggling to cope with rising living expenses.

The caucus maintains that salary negotiations should not be based solely on percentage increases but must also consider the actual financial challenges facing workers and the extent to which their earnings can cover necessities.

As part of its demands, the Minority is calling for an urgent review of the remuneration framework agreed upon by the government and organised labour.

It is also demanding the immediate reconvening of the Public Services Joint Standing Negotiating Committee (PSJSNC) to reconsider the agreement and establish what it describes as a living wage that reflects the actual cost of living.

The caucus insists that such negotiations must take into account the cumulative impact of increases in utility tariffs, commodity prices and other essential household expenses.

It further stressed that future wage negotiations must be guided by prevailing economic conditions and the welfare of workers rather than focusing primarily on nominal salary adjustments.

The Minority believes that a remuneration arrangement that fails to address the growing financial pressures on public sector employees risks leaving many workers worse off despite receiving annual salary increases.