Fair Wages Commission acting CEO proposes hourly pay in Ghana

The acting Chief Executive Officer of the Fair Wages and Salaries Commission (FWSC), Dr George Smith-Graham, has proposed the introduction of an hourly wage system across all sectors to help improve the incomes of casual workers and bring more fairness into the way people are paid.

Dr Smith-Graham made the proposal on Friday [May 16, 2025], during a familiarisation visit by the Parliamentary Select Committee on Employment, Labour Relations and Pensions to the FWSC, the National Pensions Regulatory Authority (NPRA), and the Management Development and Productivity Institute (MDPI).

He explained that an hourly wage structure could help formalise informal work arrangements, increase disposable income for low-income earners, and improve access to social protection.

He also said the approach would bring more openness into wage calculations for both employers and workers.

“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,” Dr Smith-Graham said.

At the NPRA, officials briefed the Committee on existing guidelines that allow persons aged 50 and above, who are permanently unemployed, to access their tier-2 pension funds. This is only allowed after formal confirmation by their last employer and approval from the Labour Department.

The Chief Executive Officer of the NPRA, Mr Chris Boadi-Mensah, suggested that Ghana should consider raising the retirement age from 60 to 65.

He warned that the current system may not be financially sustainable in the long term and said a review would help prevent misuse and keep the pension scheme stable.

Meanwhile, the Director General of MDPI, Professor Elijah Yendaw, outlined some of the Institute’s operational challenges.

He mentioned the lack of office space and the limited opportunities for staff training as major concerns.

He added that with better support, the Institute could make useful contributions to the country’s development, given its human resource base and experience.

Chairman of the Committee, Mr Joseph Appiah Boateng, said the visit was intended to examine the work of the three institutions, identify what needs to be improved, and help shape policies to improve how they serve the public.