Ghana is on course to introduce a new public sector pay framework by October 2026, a move expected to reshape how salaries are determined across government institutions and improve the sustainability of the country’s wage bill.
The Chief Executive Officer of the Fair Wages and Salaries Commission (FWSC), Dr. George Smith-Graham, has disclosed that the proposed National Emoluments Policy is progressing through consultations and legislative processes, with the goal of establishing an Independent Emoluments Commission (IEC) to oversee compensation across the public sector.
Speaking in an interview with the Ghana News Agency (GNA), Dr. Smith-Graham said the policy seeks to replace politically influenced salary adjustments with a transparent, rules-based system that links remuneration to productivity and fiscal sustainability.
According to him, the draft policy is currently undergoing internal reviews before broader consultations are held with key stakeholders, including the Executive, Legislature, Judiciary, Organised Labour, and State-Owned Enterprises (SOEs).
Following those engagements, the draft legislation will be forwarded to the Attorney-General’s Department for finalisation before being presented to Parliament.
“The President, John Dramani Mahama, has already declared the Independent Emoluments Commission as an institution in transition. As we speak, we are working on the zero draft of the legal instrument,” Dr. Smith-Graham said.
The proposed framework is expected to introduce major reforms to Ghana’s public sector compensation system by promoting equal pay for work of equal value, reducing disparities in remuneration, and capping excessive allowances that have contributed to rising wage pressures over the years.
A key feature of the policy is the formal integration of productivity into salary determination, a longstanding demand by labour unions and economic policy advocates.
To advance discussions on the issue, a national productivity roundtable is expected to be held in September.
Dr. Smith-Graham explained that the new system would provide the Independent Emoluments Commission with the legal authority to enforce equitable salary structures while addressing some of the challenges that have emerged under the Single Spine Salary Structure (SSSS).
The push for an independent salary-setting institution dates back more than a decade. Recommendations from the 2011 Constitution Review Committee and subsequent presidential committees consistently called for the creation of a single body to oversee public sector remuneration.
According to Dr. Smith-Graham, the recommendations were driven by concerns over fragmented salary policies and the need for a more coordinated approach to managing compensation across public institutions.
“Nobody will be able to influence the decisions of the Commission as we envisage under the law. It has to be a completely independent entity, and once it is independent, we will not have a situation where politicians or others interfere in its decisions,” he stated.
Implementation of the policy will be phased. The first stage will cover Ministries, Departments and Agencies (MDAs), subvented agencies, and state-owned enterprises that are financed through the government payroll system. Existing FWSC grading structures will serve as the foundation for implementation.
Article 71 office holders, including top political office bearers, will be brought under the framework later, subject to constitutional amendments and a national referendum.
“The IEC will determine pay for everybody, from the President to workers in public sector organisations,” Dr. Smith-Graham noted.
The reform is expected to have significant implications for public finances. Ghana’s wage bill remains one of the largest components of government expenditure, making salary management a critical issue for fiscal stability.
Dr. Smith-Graham acknowledged that implementing the new system would involve financial costs, similar to those experienced during the rollout of the Single Spine Salary Structure, when the wage bill rose from approximately six percent to 12 percent of Gross Domestic Product (GDP).
However, he stressed that lessons learned from previous reforms would help avoid unsustainable commitments. Under the new framework, salary decisions will be guided by a national compensation envelope aligned with the country’s fiscal capacity.
“The most sustainable way is for government to determine how much it wants to spend on compensation, and then the responsible institution ensures implementation within that framework,” he said.
He expressed confidence that the reforms would strengthen public sector compensation management, improve transparency, and create a sustainable wage system capable of supporting long-term economic stability.
Dr. Smith-Graham called on all stakeholders to actively participate in the consultation process to ensure the success of the transition.
“At the end of the day, the country will have a pay policy that stands the test of time and is also sustainable,” he said.
