Public sector workers are set to enjoy improved purchasing power and a cushion against the rising cost of living next year as the government announces a 9% increase in total remuneration in 2027, effective January 1.

This comes after an agreement reached between the government and Organised Labour.

The adjustment will comprise an 8-percentage-point increase in base pay and a 1-percentage-point allocation for conditions of service.

Joshua Ansah, Secretary-General of Organised Labour, disclosed the decision on Wednesday following discussions by the Public Services Joint Standing Negotiating Committee.

As part of the deal, public sector workers will also receive a 10% salary increase in 2028, effective January 1. The increment will be based on the wage bill in force at the end of December 2027.

However, the agreement must go through the required legislative process before it can be implemented.