Labour consultant Austin Gamey
Labour consultant Austin Gamey has raised concerns over the government’s recent public sector wage increase, warning that it could fuel inflation.
According to Gamey, the 10% salary increment for public sector workers will intensify inflationary pressures.
He explained that even a 1% increase in public sector wages significantly impacts inflation.
“I would have preferred a lower adjustment because even a 1% increase in public sector wages pushes us into another inflationary bracket, which eventually affects everyone, including public sector workers themselves,” he cautioned.
Gamey also highlighted the difference in response between the private and public sectors, stating that while the private sector adapts efficiently to such changes, the public sector does not.
“For fairness, the 10% increase is about the best option for now, though I would have preferred a different approach,” he added.
He emphasized that salary increments should be tied to productivity, though he admitted that Ghana has yet to fully implement a performance management system.
“The key issue is base pay. Ideally, wages should be linked to productivity, but as a nation, we have not yet fully embraced the performance management system,” he said.
The government approved the 10% wage increase for public sector employees after successful negotiations between Organised Labour/Associations and President John Dramani Mahama, who personally engaged with stakeholders to secure their support for the adjustment.
The last salary increment for public sector workers in Ghana was in 2024, when the government approved a 23% increase to adjust for rising living costs and economic conditions.
EE/MA
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