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 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.
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Bibliographic Details
| Main Author: |
Cavalcanti, Carlos |
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| Format: | Policy Research Working Paper
biblioteca
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| Language: | English |
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| Published: |
2009-12-01
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| 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, |
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| 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
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