A new study by the Ghana Statistical Service has shown variations in amounts of allowances paid to public sector employees which are exacerbating earning inequalities. This it says has created a wider disparity in the gross earnings of employees, with persons getting higher net salary averagely earning higher allowances.
The study titled: “Ghana 2022 Earnings Inequality in the Public Sector”, revealed that the average allowances of people with a basic salary of between five thousand and nine thousand cedis, is more than 26 times larger than their counterparts with basic salaries below one thousand cedis.
Speaking to findings of the report, Government Statistician Prof. Samuel Kobina Annim, said inequalities is more pronounced across government ministries, department and agencies.
He said one of the ways to address earnings inequality was through progressive statutory deductions where higher earners paid more.
He said the difference in deductions among income groups, though progressive, was marginal and had minor impact on reducing earnings inequalities.
The study indicated that while those with salary above ten thousand cedis had statutory deduction of an average of 25 per cent of gross salary, those with salary between two thousand and ten thousand paid 20 per cent of the gross salary as statutory deductions.
It was also highlighted that basic salary, deductions and allowances all increased with age and highest for the age group 50 to 60 years.
