The remuneration of Article 71 office holders in Ghana has been a longstanding subject of debate, drawing concerns over economic disparities and fiscal sustainability. The system disproportionately favors high-ranking officials, granting them ex-gratia payments and privileges while public sector workers struggle with stagnant wages and inadequate pensions.
As Ghana faces complex economic challenges, a bold, forward-thinking approach is needed. This article presents a structured analysis of the issue, integrating international best practices and offering recommendations for President John Dramani Mahama—the visionary leader of Ghana after Dr. Kwame Nkrumah.
Current Structure of Article 71 Benefits
Under Article 71 of the 1992 Constitution, the President determines the salaries and benefits of key government officials, including:
The President and Vice-President Members of Parliament Ministers of State Justices of the Superior Court Heads of Independent Governance Bodies (IGBs)
These officials receive ex-gratia payments, official vehicles, accommodation, and other privileges, often adjusted upwards despite economic downturns.
Key Controversies in Ghana
1. Ex-Gratia Payments vs. Public Sector Pensions
Unlike political office holders, public sector workers must rely on modest pensions that are often inadequate post-retirement. Many citizens and labor groups advocate for a universal pension system, ensuring parity between leadership benefits and workforce retirement security.
2. Salary Disparities
Reports indicate that Article 71 office holders have enjoyed significant salary increments, while public sector employees have endured prolonged wage stagnation. Without aligned salary adjustments, these disparities will continue to deepen economic inequality.
3. Economic Burden and Public Outcry
Ghanaians face rising inflation, tax hikes, and debt restructuring, yet their leaders continue to receive backdated salary increments and large exit packages. This disconnect fuels public discontent and demands for fiscal reforms.
International Best Practices
1. United States: Transparency and Accountability
Congressional Benefits: Members receive salaries, health benefits, and pensions based on tenure, but no ex-gratia payments. Oversight Mechanisms: Public reports ensure salary adjustments are justified and accountable to taxpayers.
2. United Kingdom: Independent Oversight
Parliamentary Benefits: MPs receive salaries, office allowances, and pensions, but no lump-sum retirement benefits. Regulatory Authority: The Independent Parliamentary Standards Authority (IPSA) enforces strict oversight on expenses and salaries.
3. European Union: Fiscal Discipline
European Parliament: Members receive standardized salaries and travel allowances, preventing excessive payouts. Structured Compensation: Salaries align with economic realities, ensuring fiscal prudence.
Recommendations for President John Dramani Mahama
1. Abolish Ex-Gratia Payments
Replace ex-gratia with a structured pension scheme for all public officials. Implement uniform retirement benefits across all government institutions.
2. Establish an Independent Compensation Commission
Create a non-partisan regulatory body to oversee salaries and benefits. Ensure salary adjustments reflect economic conditions and performance metrics.
3. Implement Transparent Salary Adjustments
Link increments to inflation rates and national productivity growth. Publish annual reports detailing compensation structures. 4. Strengthen Public Sector Pensions Increase pension contributions for public sector workers. Ensure equitable retirement security across all employment categories.
5. Adopt Global Standards for Fiscal Discipline
Benchmark Ghana’s compensation policies against OECD models. Introduce parliamentary oversight to regulate and standardize benefits.
The reform of Article 71 benefits is essential for economic stability and public trust in governance. By adopting international best practices, President John Dramani Mahama can lead a transformative fiscal agenda, promoting equity, accountability, and sustainable leadership benefits.
The time to act is now—Ghana’s future prosperity depends on bold and decisive reforms.
Retired Senior Citizen
Teshie-Nungua
[email protected]
