President John Dramani Mahama has expressed gratitude to labour unions for accepting a 10% salary increase for public sector workers, describing the decision as a “sacrifice” necessary for Ghana’s economic recovery.
During his maiden State of the Nation Address on February 27, 2025, Mahama acknowledged the difficulties faced by workers but expressed confidence that the collective effort would yield long-term benefits. “This year is a year of sacrifice,” he told Parliament. “I am confident that the sacrifices we make now will benefit our country in the future. Together, we shall build the Ghana we all want.”
The President’s remarks followed a February 20 meeting with labour leaders in Accra, where he appealed for moderation in wage demands amid the country’s financial crisis. Mahama assured unions that his administration would lead by example, cutting government expenditure and eliminating wasteful spending. “We are all tightening our belts,” he said, addressing concerns about inequality in austerity measures. “There will be no wasteful expenditure.”
Mahama also took aim at the previous New Patriotic Party (NPP) administration, accusing it of “criminal” mismanagement of the economy. “How a government can be so reckless, I can’t understand it,” he said, without providing specific details. He emphasized the urgency of stabilizing the economy, warning that failure to act would have devastating consequences for households nationwide.
The 10% pay rise, effective from January 1, 2025, marks a significant reduction from the 23% increase granted in 2024. Labour unions agreed to the lower adjustment after Mahama’s personal appeal, though some workers have expressed dissatisfaction, citing rising living costs. Employment and Labour Relations Minister Abdul-Rashid Pelpuo announced that the national daily minimum wage would also rise by 10%, from 18.15 cedis to 19.97 cedis, effective March 1, 2025.
To address long-standing grievances over wage disparities, Mahama proposed the establishment of an independent emoluments committee to standardize salaries across all levels of government, from the president to the lowest-paid worker. The move aims to restore public trust in the political class, which has been criticized for perceived insensitivity to economic hardships.
While the President’s appeals for unity and sacrifice have been welcomed by some, others remain skeptical. Critics argue that the 10% increase fails to keep pace with inflation, which continues to erode purchasing power. Labour leaders, however, have signaled cautious optimism, urging the government to deliver on its promises to grow the economy and stabilize prices.
As Ghana navigates its economic challenges, Mahama’s ability to balance fiscal discipline with social equity will be closely watched. The success of his administration’s recovery plan—and the goodwill of labour unions—may hinge on whether the promised sacrifices translate into tangible improvements in living standards and economic stability. For now, the President’s call for shared responsibility has set the tone for a year of difficult choices and high stakes.
