Labour Consultant Austin Gamey has condemned the government’s 10% salary hike for public sector workers, cautioning that it may intensify inflationary pressures and further burden the economy.
In an interview with Citi News following the announcement, Gamey described the wage adjustment as excessive and argued that even a 1% increase in public sector wages could push the economy into a higher inflationary bracket, ultimately affecting everyone, including the very workers benefiting from the raise.
“I would have preferred it lower because even a 1% adjustment on the public sector wage takes us to another inflationary bracket, and that comes back to bite all of us, including them,” he cautioned.
While acknowledging that private-sector wage adjustments often align better with economic realities, Gamey maintained that the 10% increase was not the best approach.
“The private sector responds well, but the public sector doesn’t respond well. So, for fairness, the 10% is about the best for now. I would have preferred something else.”
Gamey further argued that public sector salary increments should be linked to productivity, a practice that Ghana has yet to fully implement.
“The issue is base pay. Normally, it should be based on productivity, but we are yet to get there as a nation. We are so far not practicing the performance management system fully in Ghana.”
His remarks come after the government officially approved the 10% salary adjustment following negotiations between Organized Labour and President John Dramani Mahama, who personally engaged with union leaders to secure their support.
The pay rise, effective January 2025, is the second wage increment in less than a year, following a 23% increase in 2024 aimed at cushioning workers against economic hardships.
While the salary hike has been welcomed by public sector employees, economic analysts, including Gamey, fear it could fuel inflation and widen Ghana’s economic challenges.
Source:
3news.com
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