Budget 2016: GH¢14b compensation for workers

Government will next year inject a total of GH¢14 billion into the coffers of the Controller and Accountant General’s department to augment public sector pay, the Finance Minister has announced.

The Ministry for Employment and Labour relations has for the greater part of 2015 dealt with public sector workers' grievances as pertaining to discrepancies in the country’s pay structure.

Meanwhile, in a series of meetings held and concluded first week in October, the government and organised labour agreed on a 10 per cent increase in base salary on the Single Spine Pay Policy for 2016.

The National Tripartite Committee comprising the government, the Ghana Employers Association (GEA) and organised labour also concluded negotiations on the national daily minimum wage (NDMW) which has been increased from GH¢7 to GH¢8.

Both increments, which is for all public sector workers, become effective on January 20, 2016.

The Ministry of Finance's estimated GH¢14 billion compensation satisfies these two major pay policy decisions made under the supervision of the employment minister, Haruna Iddrisu.

Mr. Terkper also projects a total of GH¢6.6bn for capital expenditure, GH¢10.5bn for total interest payments during his presentation of the 2016 budget and economic policy statement in Parliament, Friday.

He also stated grants from donor partners is estimated at GH¢1.6bn, tax revenue is estimated at GH¢29.9bn as non-tax revenue is estimated at GH¢6.9bn.