The government has approved an increase in the national daily minimum wage from GHS19.97 to GHS21.77, effective 2026, representing a 9 percent rise. In addition, all public sector workers under the Single Spine Salary Structure (SSSS) will have their salaries increased by nine percent during the same period.
The review follows several deliberations by the National Tripartite Committee (NTC), which comprises representatives from the government, employers, and labour unions.
It was made official on Sunday, November 9, after the government, represented by the Fair Wages and Salaries Commission (FWSC) and the Ministry of Finance (MoF), and Organised Labour, signed the agreement.
During the signing ceremony, Finance Minister Dr. Ato Forson pledged the government’s commitment to upholding its side of the agreement while commending the efforts of Organised Labour.
“The country has gone through difficult times with high inflation and interest rates, but today both indicators have declined. The government is working to further reduce inflation from the current 8 percent to ease the burden on Ghanaians,” he said.
In July this year, Dr. Cassiel Ato Forson indicated that wages and salaries exceeded the budget by GH¢1.3 billion for the first six months of the year.
Per the 2025 budget statement, compensation of employees, comprising wages and salaries, pensions, gratuities, and social security, has been programmed at GH¢76.2 billion for the entire year.
Presenting the 2025 Mid-Year Budget in Parliament on Thursday, July 24, the Finance Minister revealed that the government has experienced some significant pressures on the compensation budget for the first half of 2025, mainly emanating from wages and salaries.
The wage pressures, the minister said, were largely driven by last-minute recruitment undertaken by the previous government in the last quarter of 2024, especially in the education, health, and security sectors.faced significant pressures on the compensation budget in the first half of 2025, mainly due to
“In addition, ad-hoc reviews of conditions of service undertaken in previous years have distorted the Single Spine Pay Policy and further burdened the public wage bill,” the sector minister added.
In 2024, compensation of employees amounted to GH¢67,189 million (5.7% of GDP), above the target of GH¢63,683 million (6.2% of GDP) by 5.5 percent. Wages and salaries constituted 89.8 percent of the total compensation and amounted to GH¢60,352 million (5.1% of GDP), 5.9 percent above the target of GH¢57,005 million (5.6% of GDP), per the 2025 budget statement.
In February this year, Chief of Staff Julius Debrah issued a directive annulling all public service appointments and recruitments made after December 7, 2024.accounted for 89.8 percent of A letter was circulated to heads of government institutions, instructing them to comply with the directive and submit a report by February 17, 2025, detailing the actions taken in response.
“Consistent with Government pronouncement in relation to near end of tenure appointments and recruitments, I wish to bring to your attention that all appointments and recruitments made in the Public Services of Ghana after 7th December, 2024 are not in compliance with established good governance practices and principles.”
“Accordingly, all Heads of Government Institutions are hereby requested to take the necessary steps to annul any such appointments or recruitments and submit a comprehensive report on the actions taken to this Office by 17th February 2025.”Prior to the swearing-in of President-elect John Mahama, concerns were raised over last-minute appointments and financial transactions by the outgoing administration.
The previous government defended these actions, stating, “these recruitment processes and payments have received the relevant statutory approvals and have not been proven to be illegal. It was decided that any specific allegation of illegality about any particular payment or recruitment should be brought to the attention of the Transition Team for a decision to be made.”
Minority Leader Alexander Afenyo-Markin urged President Mahama to reconsider and overturn the cancellation of these appointments. In response, the Minister of State responsible for Government Communications and a spokesperson for President John Dramani Mahama, Felix Kwakye Ofosu, defended the administration’s move to invalidate appointments made after December 7, citing procedural flaws in the recruitment process.
Speaking to the media in Accra on Wednesday, February 19, Kwakye Ofosu said, “Let me also put it on record that this action has been taken not because of a perception or a belief that they were NPP. It is because we know that the recruitment processes were attended by irregularities.”
He pointed out cases where some individuals were issued retroactive appointment letters to falsely suggest they had been hired well before the elections, while others secured positions without going through interviews or even formally applying.
Kwakye Ofosu stressed that such irregularities could not be overlooked and reaffirmed the government’s commitment to launching a fresh recruitment exercise that would be open to all qualified Ghanaians, regardless of their political backgrounds.
“In due course, government will do recruitment and it will be open to all Ghanaians irrespective of political colouration. Indeed, your party identity will not be required. You will not be asked to show whether you’re NPP or NDC when that comes, but we will do it in a regular manner,” he explained.
He also guaranteed that individuals whose appointments had been nullified would still have the chance to apply again and participate in a fair recruitment process.
“So even those who have had their employment revoked will still have the opportunity to reapply and go through due process,” Kwakye Ofosu added.
In his delivery to Parliament on Thursday, the Finance Minister revealed that more than 14,000 workers on the government’s payroll are unidentifiable and unverifiable by the Ghana Audit Service.
The minister noted that as part of the government’s fiscal consolidation strategy, the government has taken measures to sanitize public sector payroll and rid it of ghost names.The government engaged the Ghana Audit Service to undertake a nationwide payroll audit across all 16 regions of the country.
The Finance Minister revealed that the Ghana Audit Service has completed 91% of the payroll audit.The Service has identified 53,311 separated staff—these are staff who are either retired, resigned, terminated, on leave without pay, or deceased, and yet remain on government payroll.
According to the sector minister, the Audit Services expects to recover GH¢150.4 million of unearned salaries from the separated staff over the 2023 and 2024 period.“Mr. Speaker, going forward, we will enforce the monthly payroll validation process and strictly apply sanctions to all who validate “ghosts” for payment of salaries.
Rt. Hon. Speaker, let me use this opportunity to strongly caution those who validate “ghosts” across the public service that they will be personally liable for the loss of public funds,” Dr Cassiel Ato Forson said.
He assured that the Ministry of Finance will continue to monitor the payroll and put in place measures to prevent “ghost names” on the payroll.By the end of August, the Ghana Audit Service, in partnership with EY and PWC, will complete the audit of arrears and payables as of the end of 2024.The Audit Service was tasked to audit and validate GH¢68.7 billion of arrears.
The sector minister noted that about 87 percent of the audit has been completed.The preliminary results show that a total of GH¢28.3 billion has been validated for payment. Also, an amount of GH¢3.6 billion has been rejected because of errors, duplications, and non-compliance with PFM and procurement rules.
An amount of GH¢562.6 million is without adequate supporting documents, and GH¢27.3 billion is pending validation.Dr Cassiel Ato Forson stated that “once finalized, we will update the House on the findings and outcomes.”
In his delivery, Dr Cassiel Ato Forson noted that it has come to the attention of the Ministry of Finance that several contractors implementing some of these 55 stalled projects have drawn down on the loans with no work done to match the amounts drawn down.
Again, some contractors have submitted additional costs in excess of what Parliament approved. In light of this, the Ministry of Finance has commissioned a forensic audit into these projects.
“Mr. Speaker, we will apprise the House when this audit is completed,” the sector minister assured.
