Source: Nana Kwesi Boakye
A new cost-of-living report by Smart Sarpong has revealed that a majority of salaried workers in Ghana are unable to save due to increasing living expenses and inadequate wages.
According to Prof. Sarpong, the study assessed the fixed monthly expenditures of workers and compared them to the salaries they receive.
The findings showed that nearly 68 per cent of salary earners exhaust their income before the end of each month, leaving little or nothing for savings.
Prof. Sarpong identified electricity bills, transportation costs, phone bills, and rent as some of the major expenses consuming workers’ earnings.
He argued that one of Ghana’s biggest economic challenges is the country’s continued dependence on a minimum wage system instead of a living wage system.
According to him, a living wage structure would consider the actual cost of goods and services in the local market to ensure workers earn enough to meet their basic needs and adequately support a nuclear family.
He further noted that the current wage structure indirectly contributes to corruption because many workers struggle to survive on their salaries alone.
“The report seeks to draw the government’s attention to the fact that salaries are not enough for decent living,” he stated.
Prof. Sarpong added that some countries operating living wage systems also provide unemployment benefits for citizens and suggested that Ghana could begin implementing policies aimed at promoting better wages and worker welfare.
He also expressed concern over the wide salary gap between public and private sector workers, revealing that many employees in the private sector earn two to three times less than workers in government institutions.
According to him, although the government may not directly determine private sector salaries, there is a need for collaboration between authorities and industry players to introduce measures such as tax reliefs and incentives to improve incomes.
Prof. Sarpong warned that if the current trend continues, close to 70 per cent of Ghana’s workforce could retire without meaningful savings or financial security.
