Ghana’s government has approved a 9% salary increase for all public sector workers, sparking debate over whether the measure will truly ease the burden of inflation and rising living costs.
The increment, which also includes a 9% rise in the national daily minimum wage from GHS 19.97 to GHS 21.77, takes effect on January 1, 2026. It follows an agreement between the government, the Fair Wages and Salaries Commission (FWSC), the Ministry of Finance, and Organised Labour.
Finance Minister Dr Ato Forson said the decision reflects the government’s efforts to balance fiscal discipline with worker welfare.
“We appreciate the cooperation and patriotic posture of Organised Labour. This decision aligns with our efforts to consolidate stability while safeguarding the welfare of workers,” he said during the signing ceremony on November 9.
The government stated that the increase is part of measures aimed at ensuring fairness and promoting wage stability amid Ghana’s gradual economic recovery.
Experts question the real impact of the pay rise
Labour and consumer advocates, however, are sceptical that the adjustment will make a significant difference for workers grappling with Ghana’s persistent inflation and high cost of living.
Kofi Kapito, CEO of the Consumer Protection Agency, said the increment, though commendable, is “disconnected from reality.”
“You hear workers complaining because everything hasn’t reduced – rent, food, transport – all have gone up,” he said. “People used to take one year’s rent advance; now landlords demand two years. The average worker’s salary can’t keep up.”
He likened the current situation to the economic hardships of the early 1980s, when a Ghanaian lawmaker famously demonstrated how a day’s wage could barely cover three meals.
“It’s the same story today,” Kapito added. “The Ghanaian worker is performing magic to survive.”
Joshua Ansah, Secretary-General of the Trades Union Congress (TUC), said labour groups had agreed to the 9% increase in good faith but urged the government to avoid counterproductive policies.
“We expect that no new taxes or tariff hikes will be introduced to cancel out this raise,” Ansah said, adding that all commitments made during negotiations must be honoured to protect workers’ welfare.
Meanwhile, FWSC Chief Executive George Smith-Graham praised Organised Labour for its “constructive engagement” during the talks, saying the collaboration reflected a shared commitment to Ghana’s economic recovery.
Analysts say the modest wage increase underscores Ghana’s delicate effort to maintain fiscal stability while easing pressure on workers ahead of the 2026 budget year.
With inflation still elevated and economic growth subdued, the impact of the 9% raise will depend mainly on the government’s success in keeping prices stable and sustaining real income gains.
