The issue of low pay, inequalities in pay structure and poor conditions of service for Ghana’s public service workers has over the years been a major concern for successive governments. Undoubtedly, the last two decades has witnessed a significant increase in public sector wage bill reaching a ratio of 11.3% of Gross Domestic Product (GDP) in the 2008 fiscal year.
This accounts for over 40% of recurrent budget, 46% of all tax revenues and about a quarter of overall government expenditure. Indeed, the ratio of public service wage bill to GDP is deemed very high when compared to ratios of 6.2 for all West African countries and 7.5 for middle income countries. [read more]