The Fair Wages and Salaries Commission (FWSC) has saved Ghana a significant GH₵345 million in 2023 through a comprehensive nationwide payroll monitoring exercise. This initiative, which involved 120 public sector institutions, aimed to reduce the wage bill and enhance transparency within public sector employment.
During a press briefing organized by the Ministry of Information in Accra, Minister for Employment, Labour Relations, and Pensions, Ignatius Baffour Awuah, announced the substantial savings achieved by the exercise. He emphasized that the payroll monitoring initiative significantly lowered the wage bill, resulting in notable financial benefits for the government.
Industrial Harmony
Mr. Baffour Awuah also highlighted Ghana’s stable and peaceful labor environment, attributing this success to the collaborative efforts of social partners. He noted that, with the support of key stakeholders, the Ministry had successfully resolved all industrial disputes that posed a threat to the country’s peace and security over the past seven and a half years.
“The Ministry will continue its efforts to improve the welfare of workers and employers while maintaining a peaceful labor front,” he stated.
He also mentioned the ongoing review of key labor legislation, including the Labour Act, 2003 (Act 651), to make it more comprehensive and suited to modern workplace needs.
The proposed new Labour Bill includes reforms such as prohibiting certain actions by private employment agencies, extending maternity leave, and providing protection against workplace violence and harassment.
Commitment to Worker Welfare
The Minister reiterated the government’s commitment to maintaining industrial peace and harmony, as well as ensuring the welfare of both workers and employers. He highlighted the government’s focus on maintaining high income levels for workers and pensioners, noting the highest adjustment of the Base Pay since the introduction of the Single Spine Pay Policy in 2010 and a 25 percent increase in monthly pensions for SSNIT pensioners.
Additionally, he outlined other ministry achievements, including strengthening the operational capacity of the Labour Department, job creation initiatives, and improvements in pension management. He also cautioned job seekers to be vigilant against fraudulent employment schemes, stressing that the Ministry does not function as a recruitment agency.
Benefits of Payroll Monitoring
During a question-and-answer session, Benjamin Arthur, Chief Executive of the Fair Wages and Salaries Commission, explained that the payroll monitoring exercise was designed to ensure that public sector employees received accurate salaries, allowances, and benefits. He noted that the exercise had uncovered numerous anomalies, reduced the number of ghost workers on the government payroll, and enhanced the productivity of public sector workers.
“Overall, the payroll monitoring exercise has contributed to a more efficient, transparent, and accountable public sector payroll management system,” Arthur stated.