The National Lottery Authority (NLA) is facing an industrial relations dispute after staff rejected management’s proposed 12% salary adjustment for 2026 and proceeded with a sit-down strike demanding a 17% increase.
The disagreement centres on the financial implications of a tax liability exceeding GH¢5 million, which the Authority says has constrained its ability to offer a higher salary adjustment.
In a statement issued on Monday, August 24, 2026, the NLA said the tax liability resulted from the incorrect application of income tax on staff salaries between 2016 and 2022.
The Ghana Revenue Authority (GRA) subsequently notified the NLA of the outstanding liability, prompting the Board and Management to reach an arrangement with the tax authority to settle the arrears without passing the cost directly onto employees.
However, the NLA said the tax adjustment affected employees’ net salaries and became a key factor in the union’s demand for a higher pay increase.
“The Union therefore pushed for a 17% salary increase to cushion staff,” the Authority said.
Management initially proposed a 10% increase after considering the tax obligation, as well as other budgetary pressures affecting the Authority.
It later secured an additional 2%, raising the offer to 12% in an attempt to break the deadlock.
The union rejected the revised offer and subsequently declared negotiations deadlocked before referring the dispute to the National Labour Commission (NLC).
The NLA said its position was also informed by guidance from the Fair Wages and Salaries Commission (FWSC), which, in a response dated June 11, recommended an 8% salary increase based on the Authority’s financial position.
Management nevertheless increased its offer beyond the FWSC recommendation to 12%, arguing that the move demonstrated its willingness to reach a compromise with workers.
The dispute escalated after the union notified management on August 21 of its intention to embark on a sit-down strike and demonstration from Monday, August 24.
The industrial action has now placed pressure on management to find a settlement while balancing workers’ demands against the Authority’s financial obligations.
The NLA is appealing to staff to suspend the strike and return to negotiations as discussions continue through the established labour relations framework.
“The Management of the National Lottery Authority remains fully committed to resolving the issues at stake and is calling on the local Union and all staff to call off their sit-down strike and return to the negotiation table,” the Authority said.
The NLA said it is engaging the NLC in an effort to reach an amicable settlement and remains hopeful that the ongoing process, including possible arbitration, will produce a mutually acceptable resolution.
The outcome of the dispute could determine the final salary adjustment for NLA employees while also testing the Authority’s ability to balance staff welfare with its broader financial commitments.
