Economy National Topic

93% of public sector workers earn only up to GH¢2,007 – Research

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Research conducted by the Centre for Socioeconomic Studies (CSS) has noted growing disparities in the pay of public sector employees.

It noted that 92.6% of all public sector workers are living on an average monthly net salary of not more than GH¢2,007.14.

According to its data, in 2021, 61.86% of all public sector workers earned an average monthly net salary between GH¢1,720.75 and GH¢2,208.10; an average of GH¢1,964.42.

But the other 30.74% of all public sector workers earned an average monthly net salary between GH¢2,257.94 and GH¢2,797.85; an average of GH¢2,527.89.

This means an overwhelming 92.6% of all public sector workers earned an average monthly net salary between GH¢1,720.75 and GH¢2,797.85 in the year 2021.

The government made a 7% increment across the board for all public sector workers salaries for the year 2022.

However, given the fact that the official current inflation rate stands at 27.6%, the 7% pay rise is completely eroded, leaving the value of the average net salary of a public sector worker less by 20.6% in real terms.

This means the value of an average net salary of the 61.86% of all public sector workers which used to be GH¢1,964.42 in 2021 will now stand at GH¢1,559.75 in 2022.

Likewise, those of the 30.74% of all public sector workers which used to be GH¢2,527.89 in 2021 will now stand at GH¢2,007.14 in 2022.

The centre urged the government and policymakers to improve the salaries and wages of the 92.6% of public sector workers cited.

“Failure to address this situation pose a serious national security risk that threatens the viability of the state and lived experiences of citizens,” it noted.

It believes that the National Tripartite Committee, Fair Wages and Salaries Commission, Labour Commission and the Office of the Head of Civil Service, the Labour Ministry, the Trade Union Congress and other labour unions must reorient their approach to labour issues.

Find below the key research findings and observations

  • The lowest average public sector gross salary stands at GH¢2,294.33 ($284.48) as of fiscal year 2021.
  • The highest average public sector gross salary stands at GH¢86,434.49 ($10,744.67) as of fiscal year 2021.
  • 86% of all public sector workers, compromising mostly of education sector and civil and local government sector workers earned an average gross salary between GH¢2,294.33 and GH¢2,944.13 as of fiscal year 2021. That was an average gross salary of GH¢2,619.23 ($324.77)
  • 74% of all public sector workers, compromising mostly of health sector and some security services (Interior Ministry) workers earned an average gross salary between GH¢3,010.58 and GH¢3,730.46 as of fiscal year 2021. An average gross salary of GH¢3,370.52 ($417.93)
  • 6% of all public sector workers earned an average gross salary between GH¢2,294.33 and GH¢3,730.46 as of fiscal year 2021.
  • The contributing share of the 92.6% of all public sector workers that earned an average gross salary between GH¢2,294.33 and GH¢3,730.46 to the overall wage bill of GH¢32.1 billion in 2021 was 75.14%.
  • The remaining 7.4% who earned an average gross salaries between GH¢4,167.38 and GH¢86,434.49, contributed a share of 24.86% to the total wage bill of GH¢32.1 billion in 2021.
  • Total deductions per Regulation 93 of PFM Regulations 2019; Payroll Deductions, stood at 25.05% for the fiscal year 2021.
  • This put the average net earnings of the 61.86% who earned between an average gross salary of GH¢2,294.33 and GH¢2,944.13 at GH¢1,964.42 ($243.58), for the fiscal year 2021. The lowest average being GH¢1,720.75 and the highest average being GH¢2,208.10.
  • It equally put the average net earnings of the 30.74% who earned between an average gross salary of GH¢3,010.58 and GH¢3,730.46 at GH¢2,527.89 ($313.44), for 2021 fiscal year. The lowest average being GH¢2,257.94 and the highest average being GH¢2,797.85.
  • Factoring in the 7% wage increment across board in 2022 for all public sector workers, those earning less than GH¢3,000, will stand at 60.99% of all public sector workers, while those earning between GH¢3,000 and GH¢3,900 will stand at 31.61% of all public sector workers. A percentage shift of 0.87% from the lower tier.

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DAVID KOSI AMAVIE popularly known as Lamar is known for his diverse content creativity and also a professional poet writer,philanthropist,digital journalist & also has keen interest in trending and comprehensive news around the globe.

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