Gov't announces 10% pay cut for President Mahama,Veep and Ministers

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Created on Tuesday, 19 November 2013 00:00

Gov't announces 10% pay cut for President Mahama,Veep and Ministers

19 November 2013

President John Mahama and his vice, Kwesi Amissah-Arthur as well as all Ministers of state are to take a voluntary 10 percent pay cut from January 2014. The move is among the many austerity measures being introduced to help save Ghana's ailing economy.

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Delivering the government's financial statement for the year 2014 in Parliament Tuesday, Minister of Finance and Economic Planning, Seth Terkper said, the move is to demonstrate leadership and show the efforts being put in place to solve the ballooning wage bill of public sector workers due to the implementation of the Single Spine Salary Structure.

He said the “ Single Spine Salary Structure is imposing severe strain on the economy but government, employers and organized labour are continuing negotiations on how to solve it.

“We believe we are of one mind and therefore we are determined that the public sector wages will not put a strain on budget…to demonstrate leadership, the president, his Vice, appointees and ministers of State have decided to take a voluntary 10% pay cut in 2014”.

Seth Terkper further announced, that proceeds realised from the pay cut of the president, veep and ministers of state, will be used to construct specialised (Community Health Programmes and Service (CHPS) compounds, to deal with maternal mortality and neo-natal health care.

According to Mr. Terkper, the sound policies implemented by the government resulted in stable economic growth which has retained high investor confidence in the economy.

He said the economy in 2013, won the hearts of many, particularly in the areas of stable domestic bond performances.

The Finance Minister said the sterling performance of the economy resulted in the International Monetary Fund (IMF) naming Ghana as one of three of African countries which attracted the highest Foreign Direct Investments (FDI) of more than $10bn.

Source: Joy News