Business News Tue, 27 Jul 2021

Government has not granted 15% increase in base pay of public sector institutions - Finance ministry

• The Ministry of Finance says it has not granted a 15% increment in base pay to public sector institutions

• According to the ministry the arrangement has been something in existence since 2016

• It insists no new agreement has been reached on the payment of premiums

The Ministry of Finance has stated that the arrangement on the payment of fifteen percent (15%) interim premium to the staff of the Civil and Local Government Services (CLOGSAG) is not a new one.

Making this clear through a statement, the ministry stated that it "wishes to clarify that this is not a new agreement as it has been in existence since 2016 and fully implemented in 2020.

"Since the interim premium of 15% is on the base pay, it became necessary to do the relevant adjustments to reflect the negotiated 4% increase in the public sector base pay for the 2021 financial year."

It further stated that it is by this that it authorized the Controller and Accountant-General's Department to make such payments.

"Given the above, this Ministry as part of its communication to the Controller and Accountant-General’s Department on implementation of the Agreement on the 2021 and 2022 Base Pay, authorized the payment of premium and its associated arrears to CLOGSAG for 2021 in line with the existing agreement," the statement added.

The ministry has therefore explained that the government has not granted any 15% increase in the base pay of public sector institutions.

"We wish to reiterate that government has not granted any 15% increase in base pay to any public sector institution on the Single Spine Salary Structure and that the only adjustment on the Base Pay for the public service still remains the 4% for the 2021 financial year. Therefore no new agreement has been reached on the payment of premium," it said.

Source: www.ghanaweb.com