By Daniel Bampoe
The Minority Caucus in Parliament has launched a strong attack on the government’s newly signed public sector salary agreement, describing the 9% remuneration increase for 2027 as inadequate and accusing organised labour leaders of accepting a deal that fails to reflect the rising cost of living confronting Ghanaian workers.
The opposition caucus says the agreement, signed on October 28, 2026, represents another setback for public sector employees who are struggling to cope with increasing electricity and water bills, transport fares, rent, cooking gas and other household expenses.
In a press statement issued on Friday, October 30, and signed by the Ranking Member of Parliament’s Committee on Employment, Labour Relations and Pensions, Hon. Mavis Nkansah Boadu, the Minority argued that the government was demanding wage restraint from workers while allowing successive increases in the cost of essential services.
The caucus expressed particular concern over the decision to approve a 9% total remuneration increase for 2027, comprising an 8% adjustment in base pay and an additional 1% allocation for conditions of service.
For 2028, public sector workers are expected to receive a 10% base pay increase under the two-year remuneration framework.
The Minority described the agreement as an insult to workers, insisting that the increases would do little to protect household purchasing power against the cumulative effects of inflation and rising expenditure.
According to the caucus, the agreement raises serious questions about the government’s approach to workers’ welfare, especially after public sector employees received salary adjustments of 10% in 2025 and 9% in 2026.
Minority Compares Salary Increases to Rising Utility Bills
A major argument advanced by the Minority is that workers’ earnings are failing to keep pace with increases in the cost of essential utilities.
The caucus cited electricity tariff adjustments approved by the Public Utilities Regulatory Commission (PURC) throughout 2025, including a 14.75% increase effective May, a further 2.45% adjustment from July 1 and another 1.14% increase from October 1.
It argued that the cumulative effect of the adjustments amounted to nearly 19% within the year, almost twice the 10% salary increase granted to public sector workers for 2025.
The situation, according to the Minority, became more difficult in 2026 when electricity tariffs increased by 9.86% from January 1.
Although consumers received a 4.81% reduction in April, the relief was followed by a 3.49% upward adjustment from July 1.
The caucus estimates that electricity now costs approximately 29% more than it did at the beginning of 2025, compared with cumulative salary adjustments of about 20% over the same period.
The Minority maintains that this difference demonstrates how workers’ purchasing power is being eroded despite nominal increases in their salaries.
Water tariffs were also highlighted as another major source of pressure on households.
According to the statement, water charges increased by 4.02% in May 2025, followed by a 15.92% adjustment effective January 1, 2026.
A 3.06% reduction in April was subsequently followed by another 0.85% increase from July 1, 2026.
The caucus estimates that water tariffs are approximately 18% higher than they were at the beginning of 2025, arguing that the increases have placed additional pressure on workers whose salary adjustments remain comparatively modest.
It further questioned why government expects public servants to accept wage restraint while household utility expenditure continues to rise.
Rent, Transport and Cooking Gas Add to Workers’ Burden
The Minority also raised concerns about housing costs, describing the rental market as another area where public sector employees are facing increasing financial pressure.
It cited estimated residential rent increases of between 8% and 14% year-on-year as of January 2026, with Accra reportedly recording increases towards the upper end of the range.
The caucus also referred to a proposed rent increase of nearly 58% confronting traders at Makola No. 2 Market.
It further recalled that in June 2026, the Acting Rent Commissioner directed hostel operators to withdraw rent increment notices.
The statement expressed concern that some landlords continue to demand one or two years’ rent in advance despite the six-month limit provided under the Rent Act, 1963 (Act 220).
The Minority argued that such demands place additional financial pressure on public sector workers, particularly those whose incomes are already stretched by utility bills and other household expenses.
Transport costs and cooking gas were also identified as major contributors to the rising cost of living.
The caucus cited an 8% increase in public transport fares effective September 26, 2026, with some short-distance fares reportedly rising by between 10% and 12%.
It also referred to industry projections ahead of the October 16, 2026 pricing window, which estimated that liquefied petroleum gas (LPG) prices could increase by approximately 18.5% to around GH¢20.60 per kilogramme.
According to the Minority, such an increase would be particularly burdensome for households that depend on LPG for daily cooking.
The statement additionally pointed to a 15% increase in mobile data charges from July 2025, arguing that internet access has become an essential expense for workers, students and households that rely on digital services.
Food prices, school fees and other recurrent expenses were also cited as costs that continue to consume workers’ earnings.
The caucus maintains that these expenses must be considered in determining public sector salary adjustments rather than treating wages and the general cost of living as separate economic issues.
Minority Accuses Organised Labour Leaders of Failing Workers
Beyond its criticism of government, the Minority has turned its attention to the leadership of Organised Labour, questioning the circumstances under which the two-year remuneration agreement was negotiated and accepted.
The caucus said labour leaders had publicly assured workers only two weeks before the agreement that they would push for a significant increase in the 2027 base pay.
It expressed disappointment that the negotiations eventually produced an 8% base pay increase and an additional 1% allocation for conditions of service.
The Minority argued that the decision to accept a two-year framework extending into 2028 effectively commits workers to an agreement without adequately addressing their immediate concerns about the cost of living.
The caucus also recalled the negotiations for the 2026 salary adjustment, when public sector workers received a 9% increase.
According to the statement, some labour leaders described that adjustment as “woefully inadequate” but nevertheless accepted the agreement and subsequently appealed to agitating workers to remain calm.
The Minority further claimed that some unions had expressed disappointment with both government and sections of Organised Labour, while others complained that certain labour bodies were excluded from the negotiations.
It argued that the latest agreement raises renewed questions about whether workers’ interests were adequately represented during the bargaining process.
The caucus said feedback from rank-and-file union members across the country suggested widespread dissatisfaction with the outcome.
It has therefore urged workers to demand explanations from their union leadership regarding the proposals presented during negotiations, the concessions made and the reasons for accepting the two-year arrangement.
The statement questioned whether labour representatives had prioritised improved wages and working conditions or industrial peace for the government.
Minority Questions Government’s Inflation Argument
The opposition also criticised what it described as the government’s reliance on projected inflation figures to justify the salary agreement.
According to the caucus, government has pointed to an inflation target of 8%, with a margin of two percentage points either side, as part of the justification for the remuneration framework.
However, the Minority argues that projected inflation figures do not adequately capture the cumulative increases in electricity, water, rent, transport and other essential expenses confronting households.
It maintains that wage negotiations must take into account the actual expenditure pressures faced by workers rather than relying exclusively on general inflation projections.
The caucus also questioned the decision to adopt a two-year framework at a time when institutional changes are expected to affect the administration of public sector remuneration.
It described the proposed transition from the Fair Wages and Salaries Commission (FWSC) to the Independent Public Emoluments Commission (IPEC) as a development that should not be used to restrict workers’ bargaining power.
The Minority warned that institutional transitions must not become a justification for imposing what it considers inadequate salary adjustments on public sector employees.
Four Demands Presented to Government and Labour
In response to the agreement, the Minority has outlined four major demands aimed at securing what it describes as fairer remuneration and stronger protection for public sector workers.
First, it is demanding an immediate review of the remuneration framework through a reconvening of the Public Services Joint Standing Negotiating Committee (PSJSNC).
The caucus wants the committee to consider a living wage that reflects the cumulative effects of utility and commodity price increases.
Second, it is calling for a holistic cost-of-living protection framework that ensures salary negotiations take into account the impact of utility tariff adjustments and other essential household expenditure.
Third, the Minority wants government to stop using institutional changes, including the transition to IPEC, as leverage to impose what it describes as poverty-level remuneration on workers.
Finally, it is demanding accountability from the leadership of Organised Labour, insisting that union leaders publish the proposals they presented during negotiations and explain why they accepted the two-year agreement.
The caucus believes workers deserve transparency regarding decisions taken on their behalf, particularly when those decisions affect their earnings and living conditions over an extended period.
Minority Declares Solidarity With Public Sector Workers
The statement concluded with a declaration of solidarity with public sector employees and the rank and file of organised labour.
Mavis Nkansah Boadu said the Minority would continue to challenge the agreement, particularly what it considers the failure to adequately protect workers against rising household expenditure.
The caucus insists that teachers, nurses, civil servants and other public employees deserve remuneration that reflects the economic realities confronting them.
