The Government of Ghana and Organised Labour have agreed to a two-year public sector remuneration framework featuring an 8% base pay increase for 2027 and a 10% across-the-board base pay increase for 2028, under an agreement signed on Wednesday, October 28, 2026.
The agreement, concluded through the Public Services Joint Standing Negotiating Committee (PSJSNC), covers public service remuneration from January 1, 2027, to December 31, 2028.
It also provides for a review of the 2028 base pay if inflation exceeds the specified threshold, alongside consultations on compensation reforms and the proposed transition from the Fair Wages and Salaries Commission (FWSC) to the Independent Public Emoluments Commission (IPEC).
“In the event that year-on-year inflation for December 2027 overshoots the mid-point projection of 8% by a factor of two (2), the Public Sector Joint Standing Negotiating Committee shall reconvene to review the 2028 Base Pay.”
Public Sector Joint Standing Negotiating Committee
The parties said the arrangement recognises workers’ contributions to economic recovery while seeking to protect incomes, maintain fiscal sustainability and promote industrial harmony.
2027 Remuneration Increase Set at 9%
Under the agreement, total public service remuneration will increase by 9% from January 1, 2027. The adjustment comprises an 8-percentage-point increase in base pay across the board and one percentage point allocated to Conditions of Service.
The distinction means the agreed 9% remuneration adjustment is not entirely a base pay increase. The agreement specifically earmarks eight percentage points for base pay, with the remaining percentage point directed towards Conditions of Service.
For 2028, the parties have agreed to a 10% across-the-board base pay increase, effective January 1, 2028. The adjustment will be calculated using the applicable base pay as of December 31, 2027.
The agreement establishes the two increases as part of a single remuneration framework covering the two calendar years, rather than separate negotiations for each year.
Inflation Trigger Provides for 2028 Pay Review
The agreement includes an income-protection provision intended to address the risk of higher-than-anticipated inflation eroding workers’ earnings. According to the document, the 2028 base pay was agreed after considering current inflation of 5.2% and the government’s inflation projection of 8% plus or minus two percentage points for both 2027 and 2028.
This provision commits the negotiating committee to reconvene if the stated inflation condition is met. It does not automatically guarantee an additional salary increase, as any adjustment would be subject to a review by the parties.
The agreement also provides for a review of selected allowances during the transition period. The stated objective is to address distortions in the existing compensation arrangement before IPEC is implemented.
FWSC-to-IPEC Transition to Include Labour Consultations
The agreement links the remuneration framework to planned institutional reforms in public sector pay administration. Under the FWSC-IPEC transition and reform commitments, the government is to pursue a lawful and orderly transition from the existing commission to the proposed Independent Public Emoluments Commission.
The process is expected to cover the proposed legislative framework, institutional design, a National Emoluments Policy, a National Negotiations Policy and a Performance and Productivity-linked Pay Framework. Stakeholder consultations and operational readiness are also identified as components of the transition.
Organised Labour is to be consulted quarterly on reforms affecting workers. The agreement further states that the FWSC and other existing bodies will retain their lawful functions until any transfer of authority takes legal effect.
The provision establishes consultation as part of the reform process while making clear that the transition must follow the applicable legal procedures.
Agreement Seeks Industrial Harmony
The parties have also committed to resolving disputes that may arise during implementation through constructive dialogue, established negotiation processes and lawful dispute-resolution procedures.
The document states that negotiations for public service remuneration covering 2027 and 2028 are settled by the agreement. It sets the duration of the arrangement from January 1, 2027, to December 31, 2028.
The agreement was signed on October 28, 2026, by Dr George Smith-Graham, Chief Executive of the FWSC, and Bro Joshua Ansah, Secretary-General of the Trades Union Congress (TUC).
Minister of Finance Dr Cassiel Ato Forson and Thomas T. Musah, General Secretary of the Ghana National Association of Teachers (GNAT), were listed as witnesses.
The two-year arrangement provides an agreed basis for public service remuneration during the period, with provisions addressing base pay, Conditions of Service, inflation-related review, allowances and institutional reforms.
While the agreement sets out the increases and review mechanisms, it does not specify the resulting cash adjustment for individual workers. Actual increases in monetary terms will depend on each worker’s applicable base pay and the relevant compensation arrangements.
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