Labour Consultant Austin Gamey has criticised the government’s recent approval of a 10% wage increase for public sector workers, calling it excessive.
He was of the view that the move could worsen inflation.
His concerns follow the government’s announcement of the pay rise after successful negotiations between labour unions and President John Dramani Mahama, who personally engaged with union leaders to secure their backing.
This marks the second wage increase in less than a year, following a 23% adjustment in 2024 aimed at easing the rising cost of living.
While public sector employees have welcomed the move, Mr Gamey has cautioned against its potential economic consequences.
In an interview, he stressed that wage increments should be tied to productivity, a practice Ghana has yet to fully implement.
“The issue is base pay—normally, it should be linked to productivity, but we’re not there yet as a nation. The private sector responds well to this, but the public sector doesn’t. So, for fairness, the 10% might be reasonable, but I would have preferred a different approach,” he stated.
He further warned that even a small wage adjustment could drive inflation higher, ultimately impacting both the economy and the very workers benefiting from the increase.
“A 1% adjustment in public sector wages alone can push us into another inflationary bracket, which affects everyone, including those receiving the raise,” he added.
