Ghana discusses pay reform at state-owned enterprises — MyJoyOnline

In Ghana, the Fair Wages and Salaries Commission (FWSC) held consultations with leaders of state-owned enterprises on the transition to the Independent Emoluments Commission (IPEC). The meeting was attended by chief executives and their deputies, finance and human resources directors from more than 100 state-owned enterprises, as well as representatives of the State Interests and Governance Authority (SIGA), development partners and the media.

Remuneration reform

As MyJoyOnline reports, the event was part of the FWSC's nationwide consultations. They began after President John Dramani Mahama declared the commission an institution in transition in March this year.

FWSC Chief Executive George Smith-Graham said that state-owned enterprises account for a significant share of public-sector wage expenditure and are important to the ongoing reforms. He described the current public-sector remuneration system as fragmented and unequal, as well as a source of tension in labour relations, especially at state-owned enterprises.

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According to Smith-Graham, IPEC is intended to ensure an independent, professional and data-driven approach to determining remuneration in the public sector, including at state-owned enterprises. It must also take into account the financial sustainability, transparency and fairness of the system.

Questions of autonomy and allowances

During the discussion, participants asked how the new approach would affect the recruitment and retention of specialists, existing collective agreements, and the authority of boards to determine market allowances and additional payments. Smith-Graham replied that IPEC would not abolish performance-related incentives, but is intended to streamline and harmonise them within the National Remuneration Policy and the National Negotiation Framework.

The government also plans to conduct a nationwide job evaluation to create a modern classification system and ensure equal pay for work of equal value. Separately, it is planned to develop a National Productivity Framework that will link remuneration to productivity and work results. The FWSC noted that participants' proposals are to be included in the final draft of the IPEC bill, which is expected to be submitted to parliament by the end of October 2026.