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November 28th , 2024

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GHANA SAVES OVER GHC 345 MILLION THROUGH PUBLIC PAYROLL REFORMS

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The Fair Wages and Salaries Commission (FWSC) has achieved a groundbreaking milestone in its mission to enhance Ghana’s public payroll system. Through a rigorous nationwide monitoring exercise, the Commission has saved the country over GHC 345 million. This significant achievement was disclosed during a media engagement session held on Tuesday, November 26, 2024, at Osu.

The event, which aimed to update the public on the Commission's activities, brought together stakeholders, journalists, and representatives from public institutions. The gathering highlighted FWSC's dedication to improving salary administration and addressing the challenges within the public sector.

Benjamin Arthur, the Chief Executive Officer (CEO) of FWSC, opened the session by outlining the strides made in implementing the Single Spine Pay Policy (SSPP). The SSPP was designed to harmonize public service salaries, eliminate wage disparities, and ensure fairness across various sectors. According to Arthur, seven public institutions were successfully migrated to the new grade structure over the past year. Furthermore, negotiations have been finalized with 44 unions and institutions to ensure compliance with the policy.

One of the key takeaways from the event was the Commission’s focus on linking pay to productivity. Baaba Anquandah, the Director of Performance Management, emphasized this approach, noting that nine public institutions have been sensitized on performance-based compensation. She explained that a system where wages reflect productivity is vital to fostering accountability and efficiency within the public sector.

Anquandah stated, “Public sector wages must reflect productivity gains. We are working collaboratively with stakeholders to ensure this principle is upheld. It is the only way to achieve a sustainable and fair compensation structure.”

Despite these successes, 2024 has been a challenging year for the Commission. Being an election year, it witnessed a wave of industrial actions, with 14 strikes recorded across various public institutions. Benjamin Arthur acknowledged the difficulties posed by fiscal constraints and heightened union demands. Nevertheless, he expressed pride in the Commission’s ability to resolve all the strikes through dialogue and engagement with relevant stakeholders.

The FWSC also used the platform to celebrate the role of whistleblowers in uncovering irregularities within the payroll system. According to Arthur, whistleblower tips were instrumental in identifying and eliminating ghost names and fraudulent activities on the payroll, contributing significantly to the GHC 345 million savings.

“We owe this achievement to transparency, accountability, and the vigilance of individuals who prioritize the national interest. Their contributions have been invaluable in helping us cleanse the system,” Arthur remarked.

Cephas Amada, the Director of Salary Administration, took the opportunity to reiterate the foundational goals of the SSPP. He explained that the policy aims to attract critical skills to the public service, control the ballooning wage bill, and ensure equity in salary structures. Amada also discussed the Commission’s phased approach to consolidating allowances and benefits into basic salaries to promote sustainability.

Addressing the broader vision of the Commission, Arthur noted that FWSC aspires to become a global benchmark for transparency, fairness, and sustainability in pay administration. He stressed that this ambition could only be achieved through the collective efforts of all stakeholders, including the media.

“The media plays an essential role in fostering transparency and holding public institutions accountable. Your support in amplifying our efforts is crucial to the success of the reforms we are undertaking,” Arthur said.

The event concluded with a call to action for the media to partner with the Commission in promoting fairness and equity in public sector compensation. FWSC officials underscored the importance of creating a culture where employees are motivated by fairness and performance-driven incentives.

Beyond the event, FWSC’s achievement signals a turning point in Ghana’s public sector payroll management. The GHC 345 million savings reflect not only the success of the monitoring exercise but also the potential for future reforms to generate even greater efficiencies. With ongoing collaborations, the Commission is optimistic about building a more sustainable payroll system that benefits both public sector workers and the Ghanaian economy.

As the nation moves forward, the FWSC continues to advocate for reforms that will ensure the public sector remains attractive to skilled professionals while maintaining fiscal discipline. This balancing act, though challenging, is necessary for the long-term development of the country.

The Commission's efforts have already set a strong precedent, positioning it as a leader in public sector pay administration. With its commitment to transparency, fairness, and accountability, the FWSC is shaping a future where Ghana’s public workforce is rewarded equitably while minimizing financial waste. This achievement serves as a reminder of the transformative impact of good governance and accountability in public service administration.

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