Finance and Economic Planning Minister Mr. Seth Terkper has outlined a number of measures to be taken to ensure sustainability of the Single Spine Pay Policy (SSPP) and reverse ballooning of the public sector wage bill.

Mr. Terkper stated in his budget that the huge wage bill occasioned by the SSPP has crowded out the fiscal space for spending on critical social intervention and other infrastructural programmes, hence as consistent with the White Paper on the SSPP, the SSPP is to be implemented within a five-year period.

This, he explained, means aspects of the pay policy with huge fiscal implications will be spread over the five-year period rather than rushed into implementation.

He stated that government will ensure the SSPP applies to all Ministries, Departments and Agencies which are fully or partially on government budget -- except those exempted by the constitution or an Act of Parliament.

About 60.9 percent of tax revenue is used to pay public sector workers, demonstrating how dire the situation is. The wage bill for public sector workers has surged from GH¢2billion to almost GH¢7billion after government introduced the Single Spine Pay Policy (SSPP).

Mr. Terkper said government will speed up the migration of subverted agencies onto the mechanised payroll system as part of measures to ensure efficient control and management of the payroll.

The Minister indicated that the Fair Wages and Salaries Commission (FWSC), his Ministry, Public Sector Reform Secretariat, the Public Services Commission, the Office of the Head of Civil Service, and other relevant agencies will carry out complementary public sector reforms to ensure that pay is linked to productivity in the public service.

“Public service workers are expected to match the increased pay that has resulted from implementation of the SSSS with improved productivity to ensure sustainability of the pay policy.”

He further indicated that the wage adjustments in the public service and the current exercise on the rationalisation and standardisation of category 2 and 3 allowances will be undertaken within budgetary constraints in the implementation period.

“Government has decided that emphasis will be laid on determining the National Minimum Daily Wage and negotiating the public service wage before the annual budget is submitted to Parliament for approval.”

A number of public sector workers, who were migrated onto the SSPP last year, resumed agitation on the basis of claiming allowances due them -- especially with regard to ‘market premium’. In the budget, Mr. Terkper said government will urgently ensure that market premium guidelines are issued to provide clarity on the determination of market premium and prevent its abuse.

The Minister concluded by saying that the payroll upgrade, auditing, and biometric registration exercises will be mainstreamed into the government payroll and human resource management system, and there will be strict enforcement of existing wage management regulations on government officials who renege on their responsibilities, thereby prompting payroll fraud.