The Fair Wages and Salaries Commission (FWSC) has said the proposed Independent Public Emoluments Commission (IPEC) will not compete with existing public institutions or undermine the authority of boards of State-Owned Enterprises (SOEs).
According to the Commission, IPEC is expected to provide a more independent, equitable and sustainable framework for managing public sector compensation.
The assurance was given at a stakeholder engagement on the proposed transition from the FWSC to IPEC in Accra last Friday.
The engagement, held at the Lancaster Hotel, was on the theme: ‘Towards an Independent, Equitable and Sustainable Compensation System: Stakeholders’ Perspectives on Ghana’s Public Sector Pay Reforms.’
It brought together stakeholders to discuss the proposed transition and gather views on the framework for the new commission.
The Chief Executive of the FWSC, Dr George Smith-Graham, said the transition was not simply about changing the name of the institution.
He said it was intended to establish a stronger compensation system capable of addressing existing challenges in public sector pay.
Dr Smith-Graham said IPEC would not be introduced as a rival to institutions already performing specific functions in public sector administration.
He said the consultation process was therefore important to ensure that the proposed legislation reflected the concerns and experiences of workers, employers and other stakeholders.
The proposed IPEC Bill, when passed, will repeal the Fair Wages and Salaries Commission Act, 2007 (Act 737).
The reform is expected to address issues including fragmented pay structures, disparities in allowances and conditions of service, and pressures associated with the public sector wage bill.
The proposed framework will also preserve the role of boards of SOEs in determining the remuneration needs of their respective institutions.
The boards will continue to prepare evidence-based proposals based on factors such as the size, complexity, financial position and strategic importance of their enterprises.
IPEC will provide the broader review and oversight framework to protect public resources and the State’s interests as a shareholder.
The Minister of Labour, Employment and Job Creation, Emmanuel Agyekum, in his remarks, said the reform was not a power grab from existing authorities or boards.
He said Ghana was also not seeking to copy the compensation system of another country.
Instead, Mr Agyekum, who is the Member of Parliament for Nkoranza South, said the framework would be designed to meet Ghana’s own economic, legal and institutional needs.
He urged stakeholders to contribute ideas, evidence and practical recommendations to strengthen the proposed system.
Mr Agyekum said the government had accepted the Constitutional Review Committee’s recommendation for an IPEC to determine the salaries and benefits of Article 71 office holders.
He said the recommendation covers the President, Members of Parliament, the Judiciary and heads of specified constitutional bodies.
The Article 71 component forms part of the proposed commission’s constitutional responsibilities and is separate from its wider public sector compensation functions.
The government said the transition would follow the required legal and constitutional processes.
The FWSC consultations are expected to continue before the proposed Bill is taken through the appropriate legislative process.
The overall objective is to establish an independent compensation system that promotes fairness, fiscal responsibility and sustainability without creating competing institutions or undermining existing governance structures.
BY KINGSLEY ASARE & ENOCH NTIAMOAH SIAW
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