The Government of Ghana has agreed a 30% increment on the base pay of all public sector workers, a development that could spell doom for the 2023 budget presented in November 2022.
The agreement means that, government expenditure for the 2023 fiscal year will increase with the possibility of throwing the budget out of gear.
While this is good news for public sector workers, it’s a headache for the already under fire Finance Minister.
It means in the 2023 fiscal year, there is going to be cuts and shoves in terms of expenditure on the government wage-bill which is already breaking the neck of the country finances.
It was therefore not surprising that the Minister of Finance, Ken Ofori Atta bemoaned the 30% increment stating the move will take a massive toll on the government’s budget.
Addressing the media, Finance Minister, Ken Ofori-Atta said even though the increment will have a toll on the budget, the government is committed to ensuring a peaceful environment on the labour front.
“This is going to take a toll on the budget, but I am confident that with enhanced productivity and the commitment that we have given to each other, it will ensure that there is peace in this country as we look at pension and labour issues.”
The Executive Secretary of Civil and Local Government Staff Association of Ghana (CLOGSAG), Dr. Isaac Bampoe Addo assured of also working collectively with the government to increase its revenue base to aid in the development of the country.
The government agreed to increase the base pay by 30% after a series of negotiations with organized labour.
The group earlier demanded a 60% increment to compensate for the harsh economic conditions.
Minister for Employment and Labour Relations, Ignatius Baffour Awuah said the payment takes effect from January 1, 2023.