8% pay rise: Workers will be better off in real terms— Dr Acheampong
Workers in the public sector are expected to be better off in real terms than they were in several previous years, as easing inflation helps preserve the purchasing power of their salaries, Technical Adviser at the Ministry of Finance, Dr Theo Acheampong, has said.
Dr. Theo Acheampong, Technical Adviser at the Ministry of Finance, stated that public sector workers in Ghana are set to be better off in real terms this year, thanks to an easing inflation rate, which helps maintain the purchasing power of their salaries. Acheampong highlighted that the impact of salary adjustments should not be solely measured by the percentage increase, but also by how much of that increase remains valuable after accounting for inflation.
He explained the significance of a moderate wage increase coupled with lower inflation, as it could more effectively boost workers' real incomes compared to a larger salary adjustment in an economy facing rapid price hikes. On Joy News' PM Express, Dr. Acheampong discussed the 8% increase in base pay for public sector workers in 2027, stating that the government aimed for sustainable wage adjustments while controlling inflation.
Acheampong used a hypothetical 9% salary rise with inflation between 5-6% to illustrate that real wage improvement would be around 3-4%. He argued that this was preferable to granting a 25% salary increase during high inflation, as rapid price increases could negate the gains from higher pay. Historical data from 2010 showed that public sector workers were worse off in real terms in several years where inflation exceeded salary adjustments.
For example, in 2022, public sector workers received a 7% base pay increase and a 15% Cost of Living Allowance (COLA), totaling a 22% adjustment, but inflation was at 54%, resulting in a significant shortfall of the price increase. In 2023, workers got a 30% salary increase, but inflation was still at 23%, limiting the improvement in purchasing power.
This pattern began to change in 2025, when inflation was 5.4% compared to a 10% salary adjustment. For 2026, the government projected inflation to remain within single digits, against a salary adjustment of 9%. Acheampong emphasized that the success of a wage adjustment should be measured by its impact on workers' ability to meet their needs rather than the headline percentage.
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
