The IMF is insisting that it has not reached an agreement with Government to carry out layoffs in the public sector as part of the 3-year bailout programme.

This is against claims by some analysts that one of the conditions of the Fund programme will be massive public sector layoffs.

However, speaking to Joy Business Wednesday, Director for Africa Department at the International Monetary Fund (IMF),  Antoinette Sayeh, said the proposal made to Ghana was to  look at innovative ways to check the rising wage bill and make the sector more efficient.

According to him, this proposal was not a directive to the government to embark on retrenchment.

Instead, he insists, Government is required to put in place a strategy by December 2017 to make the public sector more efficient and reduce the wage bill.

Labour Consultant, Austin Gamey, agrees with IMF's position.

He maintains that under the labour rules staff rationalization will not necessarily lead to massive layoffs in the public sector.

“Government can carry out this program [rationalisation] if the need be and that it does not need the IMF to [tell it to do so]”, he said, adding the country's labour laws allows for this.

Meanwhile, Government is now expected to finalise salary negotiations and any increment for public sector workers two clear months before the presentation of the budget.

This is part of some of the agreements reached with the IMF under the three-year program.

This should mean that workers will not realise any increment in their wages over a one year period if it has not been factored into the budget before its presentation.