The Minority Caucus on Employment, Labour Relations and Pensions in Parliament has condemned the newly signed public service remuneration agreement for 2027 and 2028, describing the proposed salary adjustments as inadequate amid rising household expenses.
Under the agreement, finalised on October 28, 2026, public sector workers are expected to receive a 9 per cent total remuneration increase in 2027, comprising an 8 per cent base pay adjustment and a 1 per cent increase in conditions of service.The adjustment will rise to 10 per cent in 2028.
In a statement signed by the Ranking Member of the Committee on Employment, Labour Relations and Pensions, Mavis Nkansah Boadu, the Minority argued that the increases would not adequately protect workers’ purchasing power against rising costs of essential goods and services.
The Caucus cited increases in electricity and water tariffs, rent, transport fares, cooking gas, mobile data and other household expenses as evidence of the growing financial pressure on public sector employees.
The Minority said public sector workers had received salary adjustments of 10 per cent in 2025 and 9 per cent in 2026, with a further 9 per cent agreed for 2027.
It contrasted these figures with electricity tariff adjustments approved by the Public Utilities Regulatory Commission (PURC).
According to the statement, electricity tariffs increased by 14.75 per cent in May 2025, 2.45 per cent in July and 1.14 per cent in October, resulting in a cumulative increase of nearly 19 per cent for the year.
The Caucus further noted that electricity tariffs increased by 9.86 per cent in January 2026, before a 4.81 per cent reduction in April and a subsequent 3.49 per cent increase in July.
It argued that electricity now costs approximately 29 per cent more than it did at the beginning of 2025, compared with cumulative wage adjustments of about 20 per cent over the same period.
On water tariffs, the Minority cited a 4.02 per cent increase in May 2025, followed by a 15.92 per cent adjustment in January 2026.
It said subsequent adjustments left water tariffs approximately 18 per cent higher than their January 2025 levels.
The statement also raised concerns about rising residential rents, transport fares and cooking gas prices.
It cited estimated annual residential rent increases of between 8 and 14 per cent as of January 2026, as well as a proposed rent increase of nearly 58 per cent at Makola No. 2 Market.
The Caucus further referred to an 8 per cent increase in public transport fares effective September 26, 2026, and industry projections of an approximately 18.5 per cent increase in liquefied petroleum gas prices during the October 16 pricing window.
It also pointed to a 15 per cent increase in mobile data charges from July 2025, arguing that these additional expenses further reduce workers’ disposable incomes.
The Minority also questioned the role of Organised Labour in negotiating and accepting the two-year remuneration agreement.
It said labour leaders had publicly indicated their intention to push for a significant increase in the 2027 base pay but eventually signed an agreement providing for a 9 per cent total adjustment.
The Caucus recalled that union leaders had described the 9 per cent increase agreed for 2026 as “woefully inadequate” when it was negotiated in November 2025.
It also referred to complaints by some unions that they had been excluded from negotiations and expressions of disappointment with both government and Organised Labour.
According to the statement, feedback reaching the Minority from rank-and-file union members suggests widespread dissatisfaction with the latest agreement.
The Caucus has therefore urged union members to demand an explanation from their leadership on the proposals presented during negotiations, the concessions made and the reasons for accepting the two-year arrangement.
The Minority further criticised the decision to adopt a two-year remuneration framework, arguing that it could restrict workers’ ability to negotiate adjustments in response to changing economic conditions.
It described the use of the transition from the Fair Wages and Salaries Commission (FWSC) to the proposed Independent Public Emoluments Commission (IPEC) as a justification for the framework as an attempt to limit workers’ negotiating position.
The Caucus also questioned the government’s reliance on an inflation projection of 8 per cent, with a margin of two percentage points, to justify the salary adjustment.
It maintained that wage negotiations should take into account the actual cost pressures facing households, particularly the cumulative effects of utility and commodity price increases.
The Minority has called for an immediate review of the remuneration agreement and the reconvening of the Public Services Joint Standing Negotiating Committee (PSJSNC) to establish what it described as a living wage that reflects prevailing economic conditions.
It has also demanded a more comprehensive approach to cost-of-living protection, insisting that salary negotiations should consider the impact of utility tariff adjustments and other essential household expenses.
Additionally, the Caucus urged the government not to use institutional transitions as leverage to impose what it considers inadequate wage increases.
It further called on Organised Labour to publish the proposals it presented during negotiations and explain to its members the basis for accepting the two-year agreement.
The Minority reaffirmed its solidarity with public sector workers and said it would continue to advocate for what it described as economic justice, dignity and a fair share of national prosperity for Ghanaian employees.
