A recent study by Prof. Smart Sarpong of Kumasi Technical University has found that a mere 32.2% of salaried workers in Ghana can afford to save, with 67.8% reporting that their expenses outstrip their income. This financial strain, primarily affecting private sector employees, highlights a significant disconnect between earnings and the cost of living in the country.
Context: The Economic Landscape for Ghanaian Workers
The National Cost of Living Outlook Report for the first quarter of 2026 surveyed 4,155 households across eight regions in Ghana. The research aimed to understand the financial realities faced by a broad spectrum of the population, focusing on areas like Ashanti, Western, and Upper East regions.
A key finding is the low earning potential for most workers. The report indicates that 95% of salaried workers earn less than GH₵5,000 per month. Alarmingly, over a third, 36.4%, are earning below GH₵1,000 monthly, pointing to widespread low wages.
Disparities in Earnings: Public vs. Private Sector
The study draws a stark contrast between public and private sector compensation. Public sector employees generally fare better, with only 6.6% earning less than GH₵1,000. In contrast, a much larger 15.8% of private sector workers fall into this lowest income bracket.
When looking at earnings below GH₵2,000, 58% of private sector workers are situated here, compared to just 19.7% of their public sector counterparts. Conversely, higher income brackets show a reverse trend. Only 18.1% of private sector workers earn above GH₵4,000, whereas approximately 55% of public sector workers achieve this income level.
The Escalating Cost of Living
Compounding the issue of low wages is the rapidly increasing cost of living. The perception of a low cost of living has plummeted from 68.8% in 2025 to just 14.4% by the first quarter of 2026. While 42.8% reported no significant change, a concerning 3% increase has been noted among those who view living costs as high.
Specific areas contributing to this rise include electricity tariffs, public transportation fares, and the cost of mobile services like call credit and internet access. These essential services are becoming increasingly unaffordable for a significant portion of the workforce.
Implications for Workers and the Economy
The findings suggest a growing financial precarity for a majority of Ghanaian salaried workers. The inability to save hinders long-term financial security, emergency preparedness, and investment opportunities. This can lead to increased reliance on debt and a cycle of financial instability.
For the private sector, the low wage structure may impact employee morale, productivity, and retention. Businesses may need to re-evaluate their compensation strategies to remain competitive and sustainable in the long run.
The rising cost of essential services puts further pressure on household budgets. Policymakers may need to consider interventions to stabilize prices or provide targeted support to vulnerable populations.
What to watch next will be how the government and private sector respond to these findings. Potential policy changes, minimum wage adjustments, or new economic initiatives could be implemented to address the widening gap between income and the cost of living. The effectiveness of such measures in improving the savings capacity of Ghanaian workers will be a key indicator of economic progress.
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