Ghana’s New Public Sector Pay Policy Set for October 2026 Completion

Accra: Ghana's new public sector pay policy is expected to be passed by October 2026, Dr George Smith-Graham, the Chief Executive Officer of the Fair Wages and Salaries Commission (FWSC), said on Tuesday. In an exclusive interview with the Ghana News Agency (GNA) in Accra, he detailed how the new policy aims to establish an Independent Emoluments Commission (IEC) to standardize salaries across all public sector institutions, moving away from ad hoc political pay increases towards a rules-based system.

According to Ghana News Agency, the National Emoluments Policy, once implemented, will introduce a productivity-linked salary structure, cap excessive allowances, rationalize the wage bill, and ensure fair and equitable wages across public sector institutions. The initial draft of the policy is currently undergoing internal consultations, with broader engagements planned with the Judiciary, Executive, Legislature, Organised Labour, and State-Owned Enterprises (SOEs).

The bill will be submitted to the Attorney-General's Department for finalisation, followed by Cabinet and Parliamentary approvals, with the entire process expected to conclude before the end of October 2026. Dr Smith-Graham highlighted that the President, John Dramani Mahama, has designated the IEC as an institution in transition, and efforts are underway to finalize the legal framework.

A key feature of the new policy is the formal linkage of pay to productivity, addressing a longstanding demand from Organised Labour. A national productivity roundtable is tentatively scheduled for September to deliberate on this issue. Dr Smith-Graham emphasized that the bill's passage will empower the IEC to enforce 'equal pay for work of equal value' and address complications arising from the Single Spine Salary Structure (SSSS).

The push for an independent emoluments commission traces back to recommendations from the 2011 Constitution Review Committee and subsequent presidential committees, which identified the need for a single body responsible for determining public sector salaries. Dr Smith-Graham assured that the Commission will operate independently, free from political interference.

The policy's implementation will be phased, initially covering Ministries, Departments and Agencies (MDAs), subvented agencies, and SOEs using FWSC grades. Article 71 office holders will be included following a constitutional amendment and national referendum, with the IEC determining pay from the President down to public sector workers.

Dr Smith-Graham acknowledged potential fiscal pressures, noting that while costs are inevitable, lessons from the SSSS's implementation will guide the Commission in maintaining a sustainable compensation framework. He stressed the importance of a balanced approach, ensuring that government spending on compensation aligns with national financial capabilities.

He called on stakeholders to share their experiences to facilitate a smooth transition to the IEC, expressing confidence that the policy will be sustainable and resilient. "At the end of the day, the country will have a pay policy that stands the test of time and is also sustainable," Dr Smith-Graham stated.