Minority Caucus condemns 9% public sector salary increase for 2027

The Minority Caucus on Employment, Labour Relations and Pensions in Parliament has formally condemned the newly signed Multi-Year Public Service Remuneration Agreement, labeling the proposed 9% salary increase for 2027 as an "insult" to Ghanaian workers. In a statement issued on October 30, Ranking Member Mavis Nkansah Boadu argued that the agreement fails to match the escalating cost of living and the sharp rise in utility tariffs. The deal, finalized on October 28, provides for an 8% increase in base pay and a 1% adjustment in service conditions for 2027, followed by a 10% increase in 2028.

The caucus highlighted a significant disparity between the proposed wage adjustments and the economic realities facing households. They noted that electricity tariffs have surged by 29% and water costs by 18% since 2025, while transport fares and rent continue to climb. According to the Minority, these inflationary pressures effectively diminish the purchasing power of public sector employees, turning the nominal pay rise into a financial strain. The caucus accused the government of shifting the burden of fiscal recovery onto the workforce while demanding wage restraint.

Beyond criticizing the government, the Minority also expressed disappointment with the leadership of Organised Labour. They questioned the decision to accept a two-year agreement and demanded that union leaders justify the deal and disclose their original wage proposals to their members. The caucus called for an immediate review of the remuneration framework and the establishment of a "living wage" that reflects actual market conditions. They urged the reconvening of the Public Services Joint Standing Negotiating Committee to ensure that future negotiations prioritize the dignity and welfare of workers.

In response to the backlash, government officials and NDC representatives have defended the agreement. Finance Minister Dr. Cassiel Ato Forson described the deal as a strategic achievement for income security amid broader efforts to stabilize the economy. Meanwhile, Dr. Thomas Anaba, the MP for Garu, suggested that the Minority should focus on supporting the recovery of misappropriated state funds from the previous administration to create more fiscal space for higher wages. Despite these justifications, the Minority maintains that the current agreement is a "betrayal" that undermines the economic survival of public servants.