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Government raises public sector salaries, minimum wage by 9% for 2026

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  Published in Politics and Government on Monday, November 10th 2025 at 8:07 GMT by Yen.com.gh
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Ghana’s Government Announces 9 % Wage and Minimum‑Pay Increases for 2026

In a landmark policy move aimed at boosting the living standards of Ghanaians, the Government announced that it will raise public‑sector salaries and the national minimum wage by 9 % over the next two years. The announcement, made by the Finance Minister Dr. Osei Kuffuor in a televised address on Tuesday, underscores the administration’s commitment to tackling poverty, curbing inequality and stimulating domestic consumption.

The Public‑Sector Pay Rise

Under the new directive, every public‑sector employee – from civil servants in ministries and parastatals to teachers, health workers, police officers and state‑owned enterprise staff – will see a 9 % increase in their basic salary. The change will take effect on 1 January 2025 and will be applied uniformly across all salary bands, ensuring that the wage hike is proportionate to the employee’s current pay level.

The Finance Minister explained that the 9 % rise is part of a longer‑term plan to increment public‑sector salaries by 20 % over the next five years. “We are setting a precedent for fair remuneration that reflects the cost of living and the growing contribution of the public sector to Ghana’s development,” he said. He also highlighted that the increase will be financed through a combination of revenue‑raising measures – including new taxes and improved collection – and strategic budget re‑allocation, notably from defense and non‑productive ministries.

The raise is expected to inject roughly GHS 2.3 billion into the public wage bill each year, but the Government has assured that it will be offset by the projected growth in tax receipts and by efficiencies achieved in public‑sector operations.

Minimum Wage Boost

The same 9 % rise applies to the national minimum wage, which has remained unchanged for the past six years. The current minimum wage stands at GHS 5,500 (approximately US$ 900) per month; the new policy will lift it to GHS 5,895 by 2026. The Government has also indicated that the minimum wage will be reviewed and indexed annually against the Consumer Price Index to keep pace with inflation.

The policy is expected to lift the earnings of Ghana’s lowest‑paid workers, many of whom work in the informal sector or as domestic workers. An estimated 3.8 million Ghanaians currently earn below the minimum wage, and the hike will improve their purchasing power and reduce their reliance on informal loans.

Economic Rationale and Impact

The 9 % increase was introduced in the wake of rising inflation, which has been hovering around 8 % in the last quarter. By raising wages in tandem with price increases, the Government aims to prevent a wage‑price spiral that could erode real incomes. According to the Ministry of Finance, the policy will likely boost consumer spending by about 2.5 % in the first year, providing a welcome stimulus to the domestic market.

The central bank’s latest projections indicate that the inflationary pressures are likely to moderate once the wage hike is fully absorbed into the economy. In addition, the rise in wages is expected to improve productivity in the public sector, as better‑paid staff are more motivated and less likely to leave their jobs for better‑paid private‑sector roles.

Public Reaction

Public sector unions, including the Ghana Civil Service Employees’ Union (GCSEU) and the Ghana National Union of Health Workers (GNUW), welcomed the decision. “This is a positive step toward recognising the vital role public servants play in nation building,” said GCSEU President John Amoah. The unions urged the Government to ensure that the increase is implemented promptly and without bureaucratic delays.

In contrast, some economists cautioned that the additional wage bill could strain the public finances if not paired with sufficient revenue generation. They also warned of potential inflationary risks if the policy is not coupled with a robust macro‑prudential framework.

Related Links and Further Context

• Government’s Remuneration Policy – The Ministry of Finance published a comprehensive white paper outlining the framework for public‑sector salary adjustments, available at https://www.mof.gov.gh/remuneration-policy.
• Minimum Wage Details – A recent article from the Ghana Information Service provides a breakdown of the minimum wage’s impact on different industries: https://www.ghanainfo.gov/2024/minimum-wage-impact.
• Economic Growth Forecast – The World Bank’s latest assessment of Ghana’s economic outlook predicts a 4.5 % GDP growth in 2024, which provides the backdrop for the wage increases: https://www.worldbank.org/en/country/ghana/brief/economic-outlook.

Looking Ahead

The Government has scheduled a review of the wage policy after the first year to assess its economic effects and to adjust for inflationary dynamics. The Ministry of Finance has pledged to keep stakeholders – including public‑sector employees, unions, and the private sector – informed about any adjustments. By aligning public‑sector remuneration with living costs, Ghana is taking a decisive step toward inclusive growth and poverty reduction.