Estimating the Fiscal Costs of Implementing Ghana’s Single Pay Spine Reform

Estimating the Fiscal Costs of Implementing Ghana’s Single Pay Spine Reform

Public sector pay policy is one of the main decisions facing a government, as it determines the ability to attract, retain, and motivate staff needed to fulfill its service delivery objectives. One option usually considered is relying on a single p...

Full description

Bibliographic Details
Main Author: Cavalcanti, Carlos
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
ACCOUNTING
AGE GROUP
DEBT
EMPLOYEE
EMPLOYMENT
EMPLOYMENT STATUS
EXOGENOUS VARIABLE
EXOGENOUS VARIABLES
FINANCIAL MANAGEMENT
FISCAL IMPLICATIONS
FORMAL SECTOR EMPLOYMENT
FORMAL SECTOR WAGES
HOUSING
HUMAN RESOURCE
INFORMAL EMPLOYMENT
INFORMAL SECTOR
JOB CREATION
JOBS
LABOR FORCE
LABOR MARKET
LABOR MARKETS
LABOR PRODUCTIVITY
LOCAL GOVERNMENT
MINIMUM WAGE
MINIMUM WAGES
MINISTRY OF FINANCE
PAID WORKER
PENSION OBLIGATIONS
POVERTY REDUCTION
PRIVATE SECTOR
PRIVATE SECTOR WAGES
PRODUCTIVITY IMPROVEMENTS
PUBLIC
PUBLIC ADMINISTRATION
PUBLIC EXPENDITURE
PUBLIC POLICY
PUBLIC SECTOR
PUBLIC SECTOR EMPLOYEE
PUBLIC SECTOR EMPLOYEES
PUBLIC SECTOR INSTITUTIONS
PUBLIC SECTOR JOBS
PUBLIC SECTOR MANAGEMENT
PUBLIC SECTOR PAY
PUBLIC SECTOR PERFORMANCE
PUBLIC SECTOR STAFF
PUBLIC SECTOR WAGE
PUBLIC SECTOR WAGE BILL
PUBLIC SECTOR WAGES
PUBLIC SECTOR WORKERS
PUBLIC SERVANTS
PUBLIC SERVICE
PUBLIC SERVICES
REASONABLE ASSUMPTIONS
RURAL WORKERS
SELF EMPLOYED
SELF EMPLOYMENT
SERVICE DELIVERY
TAX
TAX REVENUES
TOTAL WAGE
UNION WAGE PREMIUM
UTILITIES
WAGE INCREASE
WAGE NEGOTIATIONS
WAGE PREMIUM
WORKERS
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091207095044
http://hdl.handle.net/10986/4343
Description
Summary:Public sector pay policy is one of the main decisions facing a government, as it determines the ability to attract, retain, and motivate staff needed to fulfill its service delivery objectives. One option usually considered is relying on a single pay spine for all services into which jobs would be slotted, thus ensuring greater comparability of similar jobs across the public sector. This paper examines the single spine pay reform currently being considered in Ghana, highlighting the differences between the Ghanaian proposal and similarly named proposals elsewhere, and underscoring the potential cost of implementing the proposal -- which is expected to be significant. There are three main findings: (i) the implementation of the single spine pay reform would raise the base pay wage bill (salaries plus category one allowances) in Ghana to GHC2.8 billion by January 1, 2010 -- an almost 50 percent increase compared with an equivalent figures of GHC1.9 billion at end-2008; (ii) because these estimates focus narrowly on the base pay wage bill, they should be regarded as a lower bound estimate of the overall increase in the wage bill; and (iii) because these estimates are derived from assumptions regarding (1) the distribution of public sector employees across public sector services and institutions; (2) the minimum public sector wage; and the (3) the relativity of all other public sector wages with respect to this minimum wage, they are subject to changes any time these assumptions also change.

Similar Items