Public Sector Pay Raise Too Much, Too Risky – Austin Gamey Cautions
Labour Consultant cautions that the 10% wage increase for public sector workers could fuel inflation and strain Ghana’s economy, urging a shift towards productivity-based adjustments.
- Gamey warns that even a 1% wage hike can push inflation higher.
- He argues salary increases should be tied to performance, which Ghana has yet to implement fully.
- The second wage hike in less than a year could worsen economic pressures despite benefiting workers.
Labour Consultant Austin Gamey has criticized the government’s decision to approve a 10% wage increase for public sector workers, calling it excessive and cautioning that it could worsen inflationary pressures.
The increment follows successful negotiations between the Labour Union and President John Dramani Mahama, who personally engaged union leaders to secure their support for the adjustment. This marks the second wage hike in less than a year, following a 23% increase in 2024 aimed at easing the burden of the rising cost of living.
While public sector workers have welcomed the move, Gamey has expressed concerns over its economic consequences.
In an interview, he argued that wage increments should be linked to productivity, a system Ghana has yet to fully implement.
“The issue is base pay—it should ideally be based on productivity, but we are yet to get there as a nation. We are not fully practicing the performance management system in Ghana. The private sector responds well, but the public sector does not,” he noted.
He further warned that even a 1% increase in public sector wages could push inflation higher, ultimately affecting both workers and the broader economy.
“I would have preferred a lower adjustment. Even a 1% increase moves us into another inflationary bracket, which comes back to bite all of us, including those benefiting from the raise,” Gamey added.
