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Govt, Organised Labour sign two-year pay deal

The government and Organised Labour have signed a two-year public service remuneration agreement that will increase workers’ total remuneration by 9 per cent in 2027 and base pay by 10 per cent in 2028.

The agreement, covering January 1, 2027, to December 31, 2028, applies to public sector workers under the Single Spine Salary Structure.

Under the deal, effective January 1, 2027, workers will receive an 8 per cent across-the-board increase in base pay, with an additional one percentage point allocated to Conditions of Service, bringing the total remuneration adjustment to 9 per cent.

For 2028, base pay will increase by 10 per cent across the board, calculated using the applicable base pay as of December 31, 2027.

The agreement was negotiated through the Public Services Joint Standing Negotiating Committee, with the government represented by the Fair Wages and Salaries Commission and the Ministry of Finance, while Organised Labour represented public service unions and workers’ institutions.

Finance Minister Dr Cassiel Ato Forson described the agreement as a significant milestone, noting that it was the first time the government and Organised Labour had reached a two-year pay arrangement.

He said the agreement was intended to protect workers’ incomes, provide families with greater certainty and help the government manage public spending responsibly.

Meanwhile, the parties have agreed to review allowances to address existing disparities and hold quarterly consultations on public service reforms.

The negotiating committee will also reconvene to review the 2028 base pay if December 2027 year-on-year inflation exceeds the agreed threshold.

The agreement is expected to provide greater predictability in public sector remuneration while supporting industrial harmony and the transition from the Fair Wages and Salaries Commission to the Independent Public Emoluments Commission.