Austin Gamey, a Labour Analyst, has revealed that the most painful issue confronting Ghana today is poor salary administration.
He disclosed that poor salary administration remains one of the country’s most persistent labour challenges, which has contributed to recurring disputes in the public sector.
The Labour Analyst urged the Ministry of Finance and the Ministry of Labour, Jobs, and Employment to develop a fair and sustainable compensation system to tackle taxpayers and workers concerns.
According to Austin Gamey, Ghana’s salary system must reflect productivity, not inflation.
He argued that Ghana’s current remuneration system relies heavily on factors such as inflation and the cost of living, rather than productivity and performance.
Austin Gamey highlighted that the current remuneration system undermines efficiency in both the public and private sectors.
Speaking to Citi News on Wednesday, June 24, 2026, Austin Gamey stated, “The most painful issue confronting Ghana today is poor salary administration. We have lived with this challenge for many years, and it appears we have not been able to find a common solution that satisfies everyone”. .
“We have inherited an old salary structure that does not adequately promote paying people based on productivity or their contribution to the growth of an institution or the economy,” he explained.
“Our labour laws require employers to set targets and performance indicators for employees, while workers are also expected to enhance productivity. Ultimately, remuneration should be linked to productivity and the value of services rendered,” he said.
Austin Gamey’s remarks follow plans by the Fair Wages and Salaries Commission to introduce a new public sector pay policy by October 2026.
Reports suggest that the proposed policy is expected to pave the way for the establishment of an Independent Emoluments Commission that would determine salaries across public sector institutions.
The move is to replace ad hoc political salary adjustments with a rules-based compensation framework.
In other news, Prof Henry Kwasi Prempeh, the Chairman of the Constitutional Review Committee, has fumed over Ghana’s practice of paying retired public officials salaries.
According to Prof Prempeh, Ghana must scrap the payment of salaries to retired public officials.
Prof Prempeh described the practise as ridiculous, questioning which country in the world pays salaries to retirees.
In a Facebook post on March 17, 2026, Prof Prempeh wrote, “We must scrap the ‘retirement on salary’ compensation practices in our public sector. Do we know any other place in the world where this sort of thing happens as commonly as it does here? We are just ridiculous!”
Prof Prempeh’s comments come following Ghana’s Finance Minister announcing the country’s ballooning wage bill, which continues to strain the country’s finances.
According to Dr Cassiel Ato Forson, Ghana spent 44 per cent of its total tax revenue on public sector wages in 2025.
Report by TV3 stated, “out of total tax revenue of GH¢183 billion in 2025, statutory obligations, including transfers to DACF, GETFund, NHIL, and debt servicing, consumed GH¢122.1 billion, leaving only GH¢61.9 billion available.
However, the government’s wage bill alone amounted to GH¢78.9 billion, creating a financing gap that forced the state to borrow approximately GH¢17 billion just to meet salary obligations.
Dr Forson emphasised that the combined burden of wages, debt servicing, and statutory transfers exceeded total tax revenue, effectively crowding out other critical expenditures.
He warned that under the current fiscal conditions, the government lacks the financial space to adequately invest in essential infrastructure such as schools, hospitals, and roads.
The Finance Minister noted that while fair remuneration remains a constitutional obligation, the current trajectory of public sector compensation poses a significant structural risk to fiscal sustainability and service delivery.
He stressed the need for careful management of wage growth alongside broader fiscal reforms to restore balance and create room for development spending”.
@ghnow_ “When I was entering, they said I didn’t have a ticket.” Black Stars superfan Obour was left stranded and visibly disappointed outside the venue of Ghana’s World Cup clash against England after being denied entry due to a ticketing issue. #GHNow #fyp ♬ original sound – Kofi Kinaata
