Friday, 01 May

Mahama announces public sector pay overhaul, labour law reforms at May Day

News
May Day 2026 celebrations with President John Mahama in blue

President John Dramani Mahama has announced plans to overhaul Ghana’s public sector pay system with the establishment of an Independent Emoluments Commission, alongside reforms to modernise the country’s labour laws.

Speaking at the 2026 May Day celebration in Koforidua, the President said the proposed commission would replace the current salary structure and be responsible for determining pay across the public sector—from the presidency to the lowest-paid government worker.

According to him, the Fair Wages and Salaries Commission has already begun preparatory work on the initiative, which is aimed at ensuring fairness, transparency and alignment with market conditions.

“The Independent Commission will provide a fairer, more transparent salary structure that ensures that public sector salaries align with market realities, reducing strikes and worker uncertainty,” he said.

Article 71 Targeted for Review

President Mahama also disclosed that government intends to use the ongoing constitutional review process to remove Article 71, which governs the remuneration of certain senior public officeholders and has been a longstanding concern for organised labour.

New Labour Bill to Reflect Modern Work Trends

Beyond public sector pay, the President revealed that a new labour bill is close to completion. The legislation is expected to address evolving work patterns, including remote work, gig employment and digital labour platforms.

He said the bill would guarantee fair contracts, secure pensions and clearly defined rights for all workers, regardless of their sector or location.

24-Hour Economy and Job Creation Drive

President Mahama highlighted the recently approved 24-hour economy policy as a key pillar of government’s job creation agenda. Under the policy, companies operating multiple shifts—particularly in manufacturing—will benefit from tax incentives and reduced electricity costs.

He added that the Finance Minister will soon present a broader economic strategy to Cabinet and Parliament, including plans to invest one percent of Ghana’s GDP annually in high job-creation sectors.

Macroeconomic Gains ‘Foundation, Not Destination’

The President noted that recent macroeconomic improvements—such as declining inflation, a more stable cedi, lower interest rates and renewed investor confidence—should be seen as a starting point for broader development.

“Stability is the foundation, but it is not the house. The reset we speak of is about building the house on a stable foundation,” he said.

Source: classfmonline.com/Pearl Ollennu