By Daniel Bampoe
A bold call for wage system reform has been made by the Chief Executive Officer of the Fair Wages and Salaries Commission (FWSC), George Graham Smith, who is proposing the introduction of an hourly wage payment model across all employment sectors in Ghana.
This, he believes, would significantly improve equity in the labour market, particularly for casual and informal workers, while boosting economic growth and social protection coverage.
Graham Smith made the proposal during a recent working visit by the Parliamentary Select Committee on Employment, Labour Relations, and Pensions to three key state institutions: the FWSC, the National Pensions Regulatory Authority (NPRA), and the Management Development and Productivity Institute (MDPI).
According to Graham Smith, Ghana’s existing compensation structures often fail to reflect actual hours worked, especially among vulnerable and casual labour groups.
An hourly wage system, he argued, would not only increase transparency but also incentivize productivity and create more structured contributions to pensions and health insurance.
“Hourly wage systems provide fairness, allow for efficient monitoring of productivity, and help formalize large swathes of the informal economy,” he told the committee.
At the NPRA, officials highlighted efforts to address growing concerns over the sustainability and inclusiveness of Ghana’s pension system.
The NPRA Chief Executive, Chris Boadi-Mensah, noted that workers aged 50 and above who become permanently unemployed can access their Tier-2 pension funds, but only after formal employer verification and approval from the Labour Department.
In a move that could spark national debate, Boadi-Mensah also proposed raising Ghana’s retirement age from 60 to 65 years, stating that the current age threshold risks undermining the long-term viability of the pension scheme and creates loopholes for early fund withdrawals.
“Extending the retirement age would reflect global trends, ensure longer contribution periods, and help reduce pressure on pension payouts,” he explained.
Meanwhile, at the MDPI, Director General Professor Elijah Yendaw used the committee’s visit to spotlight longstanding logistical and staffing challenges.
He lamented the institute’s inadequate office infrastructure and lack of specialized training for staff, which he said hinder MDPI’s ability to fulfill its national productivity mandate.
Despite these limitations, Prof. Yendaw insisted that with targeted investment and support, the MDPI has the potential to drive Ghana’s development agenda forward through evidence-based workforce training and research.
Chairman of the Committee, Joseph Appiah Boateng, said the familiarization tour was crucial for gaining firsthand insight into the institutional capacities and bottlenecks of the agencies responsible for shaping labour, wage, and pension policy.
“Our goal is to bridge the gap between legislative oversight and operational realities. This visit is the first step in formulating pragmatic, people-centered strategies,” he stated.
The proposals and revelations from the visit are expected to feed into broader national dialogues on labour market reforms, social protection coverage, and institutional capacity building as Ghana continues to grapple with economic uncertainty and a fast-changing demographic landscape.
