The John Mahama government and organised labour have agreed to increase public sector workers’ remuneration by 9 percent in 2027 and base pay by 10 percent in 2028, under a two-year deal signed on Tuesday.

The agreement, signed at the Ghana Employers Association, provides for an 8-percentage-point increase in base pay and a one-percentage-point allocation for conditions of service in 2027.

The 10 percent base pay increase for 2028 will take effect on January 1 and will be calculated using the applicable base pay at the end of 2027, according to the agreement.

The deal establishes a remuneration framework covering January 2027 to December 2028, aimed at providing predictability in public sector wages while supporting economic recovery, fiscal sustainability and industrial harmony.

It also includes a safeguard for workers if inflation rises sharply above government projections.

Under the agreement, the Public Services Joint Standing Negotiating Committee will reconvene to review the 2028 base pay if year-on-year inflation in December 2027 reaches 16 percent or higher.

The provision is based on a government inflation projection of 8 percent, with a margin of two percentage points, for both 2027 and 2028. Current inflation was cited at 5.2 percent in the agreement.

The deal also provides for the proposed transition of the Fair Wages and Salaries Commission (FWSC) to an Independent Public Emoluments Commission (IPEC), subject to the required legislative processes.

The government will pursue the legal and institutional reforms needed for the transition, including the development of a national emoluments policy and a framework linking pay to performance and productivity.

Organised labour will be consulted quarterly on reforms affecting workers, while existing institutions will retain their lawful functions until authority is formally transferred.

The transitional period will also be used to review certain allowances to address distortions in the existing compensation system, the agreement said.

The agreement was signed by FWSC Chief Executive George Smith-Graham and Trades Union Congress Secretary-General Joshua Ansah on behalf of organised labour.

Finance Minister Cassiel Ato Forson and Ghana National Association of Teachers General Secretary Thomas T. Musah witnessed the signing.

The agreement will take effect on 1 January 2027, and remain in force until 31 December 2028.