Fair Wages Commission Proposes Hourly Pay System
By Rebecca Okine
The acting Chief Executive Officer of the Fair Wages and Salaries Commission (FWSC), Dr. George Smith-Graham, has proposed the introduction of an hourly wage system across all sectors of the Ghanaian economy. The move, he says, could help improve the incomes of casual workers and bring greater fairness to the nation’s wage structure.
Dr. Smith-Graham made the proposal on Friday, May 16, during a visit by the Parliamentary Select Committee on Employment, Labor Relations, and Pensions. The visit included stops at the FWSC, the National Pensions Regulatory Authority (NPRA), and the Management Development and Productivity Institute (MDPI).
“If we begin to look at an hourly wage structure, it will allow casual workers to be better compensated for their time and could help reduce income inequalities in the labor market,” Dr. Smith-Graham said.
He explained that such a system would help formalize informal work arrangements, improve transparency in wage calculations for both employers and employees, and increase disposable income for low-income earners.
In addition to wage reforms, Dr. Smith-Graham also raised concerns about internal operational challenges at the MDPI. He mentioned the lack of office space and limited opportunities for staff training as major issues affecting performance.
During the visit to the NPRA, officials briefed the committee on current pension policies. They highlighted that individuals aged 50 and above who are permanently unemployed can access their tier-2 pension funds — but only after formal confirmation by their last employer and approval from the Labor Department.
The Chief Executive Officer of the NPRA, Mr. Chris Boadi-Mensah, also raised concerns about the long-term sustainability of the current pension system. He suggested that Ghana should consider raising the retirement age from 60 to 65 to help protect the financial integrity of the national pension scheme. Chairman of the committee, Mr. Joseph Appiah Boateng, said the purpose of the visit was to examine the work of the three institutions, assess their challenges, and help shape policy improvements that would enhance their service to the public.
