4.1 Market Premium
A market Premium is monetary incentive paid to attract and retain critical skills in short supply within the economy. The premium is to bring the salaries of skills in short supply to be close or equal to the actual market value of such skills. The rationale is to enable the Public Services complete favourably for such skill with the private sector in the labour market.
4.2 How a market premium is determined skills shortage: market premium can only be allowed for skills that are established to be in short supply in the economy. The shortage of a particular skill must first be established by the affected sub-sector of the public service. This should be matched against the standard International Labour Organisation’s ratio, for example, the standard Doctor/Patient ratio. Once the skill shortage is established, the Fair Wages and Salaries Commission conduct a Market Survey to determine the actual market value of the particular skill. Based on the results, the Commission establishes a premium factor to be used in calculating the monetary value of the market premium. A position to be considered for market premium must have its skills shortage level determined separately, (i.e. there may be a shortage of Nurses; however this does not automatically mean there is shortage of Orderlies, therefore, Orderlies would not receive the market premium.).4.3 Inducement
An inducement is a salary top-up paid to attract and retain critical skills to work in underserved areas. Through this means, critical skills would accept postings to deprived areas in the country.
4.4 Underserved area
Inducement or incentive for working in an underserved area can only be allowed in those areas definitely determined as underserved.
4.5 Determinants of under-served areas
The FWSC is working with the Centre for Remote Sensing and Geographic Information Systems in the Department of Geography and Resource Development of the University of Ghana and the Ministry of Local Government and Rural Development determine the underserved areas using the availability and accessibility of the following among others, as indicators:
- Health facilities
- Potable water and sanitation
- Communication facilities.
4.6 Review of market premium and inducement/ incentive. The Fair Wages and Salaries Commission would be responsible for undertaking regular market surveys, to determine the continued validity of skills shortage in the economy. This would help to review regularly market premium payment. The Commission would also undertake reviews to determine the continued need for inducement/incentive for specific areas of the country.