The Chief Executive Officer of the Fair Wages and Salaries Commission (FWSC), Mr. George Graham, has recommended the introduction and implementation of an hourly wage payment system across all sectors of the economy.

This system is set to formalise the informal labour market, improve fairness and transparency in compensation, particularly for casual workers.

In a discussion with the Parliamentary Select Committee on Employment, Labour Relations, and Pensions during a familiarization visit to key institutions, Mr. George Graham further noted that increasing disposable income and expand access to social protections will ultimately stimulate economic growth.

In February this year, the National Tripartite Commitee announced that the Base Pay on the Single Spine Salary Structure (SSSS) has been increased by 10% across board from January 2025 to December 2025.

This translated into a new national daily minimum wage of GHC19.97. The previous minimum wage in 2024 was GH ¢18.15 from the previous GH¢14.88, in the 2023 financial year.

Successive governments have made several attempts to formalise the informal sector but much is still desired. The National Report on Productivity, Employment, and Growth released by the Ghana Statistical Service (GSS) noted 8 out of 10 employed persons are engaged in informal activities.

Informal sector activities are dominated by own-account work, where earnings are typically low and irregular. Paid employment (most of which are in the formal sector), with clearly defined employer-employee relationships subject to national labour standards, constitutes between 20.2% and 27.4% in the Ghanaian labour market.

The Parliamentary Select Committee on Employment, Labour Relations, and Pensions conducted a familiarization visit to the Fair Wages and Salaries Commission (FWSC), National Pensions Regulatory Authority (NPRA), and the Management Development and Productivity Institute (MDPI).

The visits aimed to assess the current operations of these agencies, identify areas requiring improvement, and contribute to formulating strategies to enhance service delivery and operational efficiency.

At NPRA, officials discussed existing policies allowing individuals aged 50 and above who are permanently unemployed to access their tier-2 pension funds, contingent upon formal employer confirmation and Labour Department approval.

Additionally, the Chief Executive Officer (CEO) of NPRA, Chris Boadi-Mensah, suggested raising the retirement age from 60 to 65 to address pension sustainability concerns and prevent exploitation of the current system.

On his part, the Director General of MDPI, Professor Elijah Yendaw, highlighted the institute’s pressing challenges, including lack of office space and insufficient staff training. He stressed that with proper investment and support, MDPI, with its robust human resources and long-standing experience, could make significant contributions to national development goals.