Ghanaians will decide in a national referendum whether the pay of the President, ministers, MPs and Superior Court justices should come under a new Independent Public Emoluments Commission (IPEC), according to the 2027 Budget Statement.
The Statement, presented to Parliament by Finance Minister Cassiel Ato Forson on Thursday, November 12, says the Fair Wages and Salaries Commission (FWSC) will transition into IPEC during a two-year pay overhaul in 2027 and 2028. 3News, which reported the plan from the full Statement, describes IPEC as replacing the FWSC.
"Let me be clear: this is not a change of name," the Statement says. "It is a change in how public sector salaries, allowances and benefits are decided, negotiated, regulated and managed."
Four phases
According to the Statement, the government will first submit an IPEC Bill to Parliament in 2027, covering public institutions and state-owned enterprises. It will then pursue constitutional amendments to make IPEC a constitutional body that "outlives any one government".
Third, a national referendum will decide whether Article 71 office holders, such as the President, Ministers of State, MPs and Justices of the Superior Courts, should also come under IPEC. Finally, four policies will be introduced, covering public sector emoluments, pay negotiations, performance-based pay, and allowances and benefits.
"Today, two public service workers with similar qualifications, doing similar work, can take home very different pay simply because of where they work," the Statement says. It adds that the FWSC "has not had enough independence".
'Not a wage freeze'
While the reform runs, the government says it will exercise restraint in approving new allowances, special salary structures and wholesale reviews of conditions of service. "Mr. Speaker, let me assure Ghanaians that this is not a wage freeze," the Statement says, adding that existing lawful obligations will be honoured.
The Budget also says the government and Organised Labour have agreed a 9 percent rise in Single Spine base pay from January 1, 2027, with one percentage point set aside for conditions of service and pay distortions.
The new GH¢25.04 daily minimum wage for 2027 was agreed separately by the National Tripartite Committee and announced in a communique on November 10, Citi Newsroom and 3News reported. The Budget Statement restates it.
When is the referendum?
The Statement does not say when the referendum will be held or whether the IPEC question will be on the ballot of the referendum planned for 2027.
It allocates GH¢1.2 billion to the Electoral Commission, GH¢900 million of it for the District Level Elections and a constitutional referendum, a figure Graphic Online also reported. The Statement says the Commission has prepared a draft Constitutional Instrument for the 2027 referendum.
President John Dramani Mahama said in August that a referendum on constitutional amendments would be held alongside the 2027 District Assembly elections, the Ghana News Agency reported.