President John Dramani Mahama has announced that government will replace the Fair Wages and Salaries Commission with a new independent emoluments commission as part of sweeping reforms to address longstanding challenges in public sector pay.
The President said the reform forms part of his administration’s reset agenda and will take effect from 2026, which has been declared a year of transition toward a more transparent and sustainable compensation system.
Speaking during a dialogue with organized labour at the Presidency on Tuesday, March 17, 2026, President Mahama acknowledged the critical role workers play in national development and stressed the importance of continuous engagement between government and labour.
He described the meeting as a shared responsibility to rethink the future of work, compensation, and social protection in Ghana.
He noted that for years, Ghana has grappled with disparities in public sector pay, recurring labour disputes, and a remuneration structure that struggles to balance fairness to workers with the country’s financial realities.
According to him, these challenges have placed pressure on public finances and strained relations between government and organized labour.
President Mahama said the time has come for bold structural reforms rather than incremental changes. He explained that the new independent emoluments commission will build on the existing framework of the Fair Wages and Salaries Commission, which will be strengthened and repositioned to support the transition.
The proposed body, he said, will establish a transparent, rules-based, and evidence-driven system for determining public sector salaries and benefits. Pay decisions under the new system will be guided by productivity, labour market conditions, fiscal sustainability, and national development priorities.
The President added that the reform seeks to address longstanding inequities in the public sector, harmonise allowances, and strengthen the link between pay and productivity, while ensuring fairness to workers and responsibility to taxpayers.
He emphasized that implementation will be done in phases and in full consultation with organized labour. As an initial step, the new legal framework will cover public sector institutions, agencies, and state-owned enterprises, with a differentiated approach based on their financial capacity and operational realities.
President Mahama clarified that the inclusion of Article 71 office holders will only take place after the necessary constitutional and legislative processes have been completed, at which point the commission will become a fully fledged constitutional body responsible for determining the emoluments of all public office holders.
As part of the transition, he indicated that 2026 will not be a year for full renegotiation of conditions of service across the public sector. Instead, government will implement targeted and modest adjustments to selected allowances as an interim measure to maintain macroeconomic stability and manage expectations.
He described this approach as a strategic pause aimed at addressing structural weaknesses in the compensation system rather than a withdrawal from engagement with labour.
In preparation for the reforms, the President said the new commission will develop a comprehensive national emoluments policy to tackle pay disparities, harmonise benefits, promote performance-based compensation, and align wages with Ghana’s long-term development goals.
Source: Mubarak Yakubu/angelonline.com.gh
