Government has announced plans to establish a new Independent Emoluments Commission as part of sweeping reforms aimed at restructuring Ghana’s public sector compensation system and restoring fiscal discipline.
Speaking at the Presidential Dialogue with Organized Labour at the Presidency, President John Mahama said the reform marks a shift toward a “transparent, rule-based” and “evidence-driven” framework for determining public sector pay, replacing what he described as a fragmented and often unsustainable system.
He indicated that 2026 would serve as a transition year from the existing Fair Wages and Salaries Commission to the new body, which will be repositioned as the “technical cornerstone” of a more independent and credible national authority.
The proposed commission, according to the President, will align salaries and benefits with “productivity,” “labour market realities,” and “fiscal sustainability,” while addressing longstanding disparities across the public sector. The reform also seeks to “rationalize allowances” and strengthen the link between compensation and performance.
President Mahama stressed that the transition would be implemented in phases and in “full consultation” with organized labour, noting that the initial legislative framework would cover public institutions, agencies, and state-owned enterprises with a “differentiated approach” based on financial capacity.
He clarified that the inclusion of Article 71 office holders would only occur after the necessary constitutional and legislative processes, after which the commission would evolve into a constitutional authority responsible for determining emoluments “from the president to the least paid” public worker.
As part of the transition, the President signalled a temporary restraint on wage negotiations, stating that 2026 would not accommodate full renegotiation of conditions of service. Instead, the government will implement “targeted, modest adjustments” to selected allowances as it builds a comprehensive national emoluments policy.
He described the move as a “strategic pause” intended to stabilize the macroeconomic environment while laying the foundation for a sustainable compensation framework.
The planned policy will focus on addressing “pay disparities,” harmonizing allowances, and embedding “performance-based compensation” within the public sector, while aligning remuneration with Ghana’s broader development priorities.
On pensions, the President warned that the current system faces significant sustainability risks, citing limited coverage and low participation rates. With fewer than two million contributors out of an estimated 10 million workers, he described the situation as a “critical crossroads” requiring urgent reform.
He has therefore directed the Minister of Finance to lead a comprehensive review aimed at expanding coverage, particularly within the informal sector, while improving governance and investment management to ensure retirement security.
President Mahama also highlighted fiscal pressures within the energy sector, noting that over $8 billion has been spent in recent years to address financial shortfalls, including about $1.57 billion in 2025 alone to settle legacy debts. Persistent inefficiencies in revenue collection, particularly at the “billing and metering stage,” continue to erode resources that could otherwise support wages and social protection.
He said the government is intensifying reforms to “restore discipline” in the sector and eliminate inefficiencies, intending to unlock resources for broader economic development.
Framing the dialogue within a broader governance approach, the President emphasized “transparency” and stakeholder engagement, stating that the government has “nothing to hide” in presenting the true state of the economy.
He emphasized the need for collective responsibility in managing national resources, noting that sustainable improvements in wages and living standards depend on efforts to “grow the national cake” through increased productivity and economic expansion.
