IPEC will ensure Equity and Sustainability in SOEs Compensation

Dr. George Smith-Graham, Chief Executive of the Fair Wages and Salaries Commission (FWSC), has urged State-Owned Enterprise (SOE) leaders to endorse the formation of an independent compensation system for the public sector. This call came during a stakeholder engagement in Accra focused on transitioning the FWSC into the Independent Public Emoluments Commission (IPEC).

The meeting, themed "Towards an Independent, Equitable & Sustainable Compensation System: Stakeholder’s Perspectives on Ghana’s Public Sector Pay Reforms", gathered SOE executives, HR directors, finance officials, development partners, and the media.

Dr. Smith-Graham emphasized that the shift from FWSC to IPEC is more than a name change; it represents a significant overhaul of Ghana's public sector remuneration framework. He lamented the system's fragmentation, inequity, and fiscal unsustainability, stating that the IPEC initiative aims to rectify these issues. The reform, a presidential priority, will replace the current disjointed system with an integrated, transparent, and performance-driven National Public Sector Emoluments Management System.

Key aspects of this new system include ensuring equitable pay for work of equal value, harmonizing compensation across public services including SOEs, and tying remuneration to productivity and performance.

Smith-Graham highlighted the crucial role of SOEs in this reform, noting that disparities, overlapping negotiations, and fiscal pressures often stem from this sector.