Resetting Ghana’s “Broken” Payroll System: Expert Proposes 10-Point Plan to Ensure Timely Salary Payment

Amid rising agitation from nurses, teachers, and other public sector workers over months of unpaid salaries, accounting and law professional Professor Stephen Kwaku Asare, popularly known as Kwaku Azar, has tabled a 10-point proposal to restore discipline and accountability in Ghana’s payroll system.

His suggestions aim to ensure no worker is forced to serve as an involuntary creditor to the state.

No Unfunded Postings

The accounting professional insists that every recruitment or posting must be tied to a funded position ID in the Establishment Register. If there’s no budget allocation, there should be no posting. This, he believes, will end the practice of employing staff without provision for pay.

First-Charge Protection of Salaries

Salaries, he argues, must be the first call on government funds after debt and constitutional obligations. Once wages are appropriated, they should be untouchable and non-negotiable.

Temporary Pay Codes for New Staff

To prevent new hires from working months without pay, Prof. Azar proposes that provisional pay codes be issued immediately upon posting, while verification processes continue in the background.

Stabilization Buffer for Wages

A wage contingency fund should be created to absorb cash-flow shocks. Surpluses from revenue-generating agencies, such as the National Lotteries Authority, should be redirected into this fund instead of being used for non-essential projects.

HR–Payroll Data Integration

He calls for seamless integration between the Human Resource Management Information System (HRMIS) and the payroll system. This would ensure that postings, transfers, and promotions instantly reflect in salaries without bureaucratic delays.

No Ministerial Discretion on Funds

Prof. Azar recommends removing the discretionary powers of the Finance Minister to delay releases. Once salaries are approved in the budget, payments must flow automatically.

Arrears Clearance Rules

Outstanding salary arrears, he proposes, should be cleared using a FIFO (first-in, first-out) method.

Additionally, workers should earn interest if their pay is delayed beyond 30 days.

Cash Release Calendar with Legal Force

A legally enforceable monthly cash release calendar must be published, ensuring payroll is predictable and not subject to ad hoc decisions by the Ministry of Finance.

Government Overdraft, Not Salary Arrears

If cash shortages occur, Prof. Azar argues the state should use temporary overdrafts at the Bank of Ghana rather than forcing arrears on workers. Salaries must be protected at all costs.

Real Accountability

Finally, missed payroll deadlines must come with consequences. He proposes surcharges, performance penalties, and public scorecards for officials who fail to ensure timely salary disbursement.

For Prof. Azar, the payroll crisis is not a clerical issue but a matter of accountability. “Pay Day must be sacred,” he stresses, adding that reforms are needed to restore dignity to public service.

His 10-point blueprint offers a practical roadmap to end the cycle of arrears and ensure Ghanaian workers, from nurses and teachers to doctors and civil servants, are paid what they have earned, on time, every month.

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