Only 32.2% of Ghanaian salaried workers can save money from their monthly earnings, according to a new study. Nearly seven in ten workers spend all, or more than, what they earn each month.
This situation stems from weak income growth and rising living costs. These factors continue to squeeze household finances significantly. Many workers depend entirely on their next paycheque to cover basic expenses.
The findings point to a growing 'salary-to-salary' economy in Ghana. Workers have little capacity to build savings or absorb financial emergencies. This issue creates broader concerns about the gap between wages and household expenses. Ghana's economic recovery has not fully translated into stronger financial health for many families.
Dr. Smart Sarpong of Kumasi Technical University conducted this research. He surveyed over 4,000 households across various regions in Ghana. The study examined income levels, expenditure patterns, and public perceptions of the cost of living.
Data from the report shows about 95% of salaried employees earn less than GHS 5,000 each month. A substantial portion of these workers earn below GHS 2,000. These figures expose a significant disconnect between earnings and the actual cost of living in Ghana. Urban centres, in particular, face sharply increased costs for rent, food, transport, and utilities.
The study also highlighted major income differences between public and private sector workers. Employees in the private sector are more vulnerable to low wages and financial instability. For many, the cumulative effect of years of price increases on modest incomes now poses a greater challenge than just inflation rates.
Economists note that even with moderating headline inflation, the cost of basic necessities remains high compared to wages. This explains why many households do not feel the benefits of macroeconomic recovery. Lower inflation means prices are rising slower, not necessarily falling. Therefore, pressure on disposable income remains severe for workers whose salaries have not increased meaningfully.
Weak household savings among salaried workers can have wide-ranging economic implications. Household savings are vital for domestic capital formation and financial sector deposits. When workers cannot save, the financial system loses a critical source of stable funds. This makes households more vulnerable to debt and unexpected financial shocks. It also affects retirement planning, education funding, and home ownership.
Analysts warn that these patterns could weaken Ghana's economic recovery. This will happen if wage growth stays low and credit conditions do not improve. The report also found declining public confidence in living conditions. Respondents expressed worries about the affordability of essential goods and services. Transport fares, food prices, accommodation, and utility costs are key pressure points.
The findings reveal a deeper structural problem in Ghana's labour market. Many salaried workers are in sectors with low wages and limited income progression. This means formal employment does not automatically guarantee financial security. The study adds urgency to shifting policy focus from macroeconomic stabilization to jobs, wages, and household welfare.
Ghana's next recovery phase must expand productive employment and improve access to affordable credit. It must also support wage growth and lower the cost of essential services. Without these measures, economic recovery risks remaining only in official data, rather than improving the lives of ordinary workers.