Fair Wages Panel Urges Bold Shift to Hourly Pay System
Fair Wages Commission Proposes Hourly Pay System to Boost Equity and Casual Worker Income in Ghana
Dr. George Smith-Graham, the interim CEO of the Fair Wages and Salaries Commission (FWSC), has suggested that Ghana use an hourly wage payment system for all industries. His proposal seeks to lessen income inequality in the labor market, increase salary transparency, and increase compensation for temporary employees.
On May 16, 2025, Dr. Smith-Graham made this proposal during the Parliamentary Select Committee on Employment, Labour Relations, and Pensions’ familiarization visit to three important labor-related organizations: the Management Development and Productivity Institute (MDPI), the National Pensions Regulatory Authority (NPRA), and the FWSC.
He clarified that switching to hourly pay would help formalize informal employment agreements and guarantee that employees receive just compensation for the time they devote to their tasks. Additionally, this new wage strategy may improve low-income earners’ access to social security programs and raise their disposable income, particularly in the unorganized sector.
“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 labour market,” he stated.
The NPRA told the committee during the same visit that people 50 years of age and older who are continuously unemployed can access their tier-2 pension funds as long as they have confirmation from their former employers and permission from the Labour Department. Furthermore, Mr. Chris Boadi-Mensah, the CEO of the NPRA, suggested raising Ghana’s retirement age from 60 to 65, cautioning that the country’s current retirement system might not be financially viable in the long run.
Professor Elijah Yendaw, the MDPI’s director general, also emphasized the institute’s operational problems, such as a shortage of office space and little possibilities for staff growth. In order for MDPI to effectively contribute to national development, he emphasized the necessity of increased institutional support.
Mr. Joseph Appiah Boateng, the chairman of the committee, reaffirmed Parliament’s commitment to addressing institutional difficulties and assisting in the development of progressive labor and pension laws that benefit all Ghanaians as he wrapped off the tour.
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