The Finance Minister, Seth Terkper has disclosed that government will soon review the embargo which has been placed on public sector employment.
The review will be informed by the next assessment stage of the Single Spine Pay Policy.
In 2010, the government placed a ban on the recruitment of employees in the public sector to reduce the increasing wage bill.
Some teachers complained that the embargo over the years has increased the rate of unemployment in the country.
The Health Minister on September 4 gave indications that his Ministry will make a special case to Ministry of Finance to allow the employment of health personnel for the three regions of the north.
The sectors which have largely been affected by the embargo are health and education.
Speaking on the Citi Breakfast Show on Monday, Mr. Terkper explained that government is forced to freeze employment “when the economy is not doing well…but this is being reviewed.”
[contextly_sidebar id=”0tZROXel1KV5m4z5rmR1BzhEceTcRKix”]The decision was also aimed at reducing the increasing public wage bill due to the payment of the Single Spine Salary Structure (SSSS).
He admitted that the ban on employment in the public sector is overburdening the private sector .
The salary structure has been blamed for contributing the challenges the economy is facing but some economists and workers unions have dismissed government’s claims.
The Finance Minister on April 1 told Parliament as part of measures to rationalize government expenditure in 2014, a proposal of a moratorium on public sector wage increases in 2014, the continuation of the policy of a net freeze on employment into some sectors of the public service amongst others has been made.
But the announcement received widespread criticisms from labour organizations who in turn accused the government of indiscriminate spending and incessant borrowing.
However, Mr. Terkper says available data shows that “some public sector pay may be at par or even higher than the private sector…”
He added that as “for as long as we are using budget resources to pay wages, you may go against productivity.”
By: Efua Idan Osam/citifmonline.com/Ghana
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