GFL warns rising wage bill could strain Ghana's finances

The Secretary-General of the Ghana Federation of Labour, Abraham Koomson, has cautioned that Ghana’s growing public sector wage bill could continue to place significant pressure on government finances unless urgent reforms are implemented.

He attributed the situation partly to the persistent presence of “ghost names” on the government payroll, stressing that a portion of the wage bill does not represent legitimate payments to workers.

Koomson called on the government to take decisive and sustained action to clean up the payroll system, eliminate ghost workers and strengthen controls to enhance efficiency and accountability.

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His remarks follow concerns raised during a high-level meeting between President John Dramani Mahama and Organised Labour, where the Minister for Finance, Cassiel Ato Forson, highlighted the increasing burden of wages on the country’s revenue.

According to Dr Forson, Ghana spent about 44 percent of its total tax revenue on public sector wages in 2025, well above the 35 percent threshold recommended by ECOWAS.

He described the trend as a major strain on the country’s fiscal space.

Speaking on Ahotor FM on March 21, 2026, Koomson warned that without aggressive measures to address payroll inefficiencies and control the growth of wages and allowances, the situation could worsen.

He also raised concerns about low productivity levels in the public sector, urging the government to implement policies aimed at improving worker output and overall efficiency.

The GFL Secretary-General, however, commended President Mahama for engaging Organised Labour on March 17, describing the meeting as a positive step towards transparency and inclusive governance.

He noted that such engagements help keep workers informed about the state of the economy and government policy direction, while fostering collaboration in addressing national challenges.