President John Mahama has announced a major overhaul of Ghana’s public sector pay system, declaring 2026 as the transition year from the Fair Wages and Salaries Commission to a new Independent Emoluments Commission.

The President made the announcement on Tuesday, March 17, at the Jubilee House during a high-level dialogue with Organised Labour, describing the move as a bold structural reform aimed at addressing longstanding disparities in public sector remuneration.

He said Ghana’s current pay system has, over the years, been characterised by inequities, repeated labour disputes and challenges in balancing fairness to workers with the country’s fiscal realities.

“It is my firm conviction that the time has come not for just incremental adjustments, but for bold structural reforms in how public sector emoluments are determined and managed,” President Mahama stated.

Under the proposed reform, the new Independent Emoluments Commission will establish a transparent, rule-based and evidence-driven framework for determining salaries and benefits across the public sector.

The system, he explained, will be guided by factors such as productivity, labour market conditions, fiscal sustainability and national development priorities, with the aim of linking pay more directly to performance.

President Mahama noted that the transition is not intended to dismantle the existing framework but to build on it, with the Fair Wages and Salaries Commission repositioned and strengthened to serve as the technical backbone of the new structure.

He added that the reform would help address persistent inequalities, rationalise allowances and benefits, and move Ghana away from fragmented salary decisions towards a more coherent and sustainable system.

“Our goal is to move to a system that is fair, responsible to taxpayers and sustainable for future generations,” he said.

The President assured Organised Labour that the transition would be implemented in phases and in full consultation with stakeholders.

As part of the process, he said the government will introduce a new legislative framework covering public sector institutions, agencies and state-owned enterprises, with a differentiated approach reflecting their financial capacities.

He clarified that the inclusion of Article 71 office holders would only be considered after the necessary constitutional and legislative processes are completed, at which point the commission would be elevated into a full constitutional body responsible for determining the emoluments of all public office holders.

President Mahama also indicated that 2026 will not see a full-scale renegotiation of conditions of service across the public sector.

"Instead, the government will carry out targeted, modest adjustments to specific allowances as an interim measure," he said.

He said this approach is necessary to maintain macroeconomic stability, manage expectations and create the space needed to build a credible and sustainable national emoluments framework.

“This is not a withdrawal from engagement with labour. It is a strategic effort to address the structural foundations of our compensation system in the interest of all,” he said.

The proposed Independent Emoluments Commission is expected to develop a comprehensive national policy to harmonise allowances, address pay disparities and strengthen performance-based compensation, aligning public sector pay with Ghana’s long-term development goals.