The International Monetary Fund (IMF) has asked the government to reduce compensation given to public sector by 0.5% as part of its directives.
This is contained in the 3-year programme document with the Fund to achieve discipline in terms of finances and return the country back to economic growth.
The Fund is undertaking what it describes as wage moderation to achieve target.
The document also says that wages of public sector workers would be infeasible to ensire a balance between burden sharing, productivity, and the capacity to pay.
This means that public sector employment could be in danger in regards to what the government seeks to achieve under the IMF deal.
The Minister of State of the finance ministry, Dr Mohammed Amin Adam, however, said there will be no freeze on employment.
He also assured that the government will employ for critical sectors of the economy.
“There is nowhere in the statement that says there is a freeze on employment. We are not going to do that. But this is not also different from what we have been doing. ”
During a national address on Sunday, 26 May, President Nana Akufo-Addo acknowledged that the approval represents a positive step toward taking the country out of struggles and putting it back on its feet.