Management of the National Lottery Authority (NLA) has called on striking workers and their local union to suspend their industrial action and return to the negotiation table as efforts continue to resolve a dispute over salaries and staff welfare.
In a statement issued on Monday, August 24, 2026, the Board and Management of the NLA said they remain committed to finding an amicable resolution to the impasse, which has resulted in a sit-down strike by staff.
A key factor behind the dispute, according to management, is the Authority’s decision to absorb more than GH¢5 million in tax arrears owed to the Ghana Revenue Authority (GRA) on behalf of staff. The arrears accumulated between 2016 and 2022 due to what management described as the incorrect application of income tax calculations on staff salaries.
The statement said the NLA Board and Management reached an arrangement with the GRA to settle the outstanding tax liabilities without passing the financial burden onto employees. Management noted that the decision was taken to protect staff from having to bear the cost of the historical tax obligations.
According to the Authority, the tax anomaly has since been corrected, with the appropriate tax deductions now being applied to salaries going forward. However, management acknowledged that the change has affected employees’ net salaries and contributed to demands for higher salary adjustments.
Management explained that the disagreement stems from negotiations over salary adjustments for 2026. The local union requested a 17 percent salary increase to cushion workers against the impact of the revised tax deductions, while management approved a 12 percent increment after considering the Authority’s financial position and other obligations.
The statement noted that during budget approval discussions, the Board determined that it could only approve a 10 percent increase due to the financial burden of absorbing the tax arrears and other budgetary constraints. Management subsequently secured an additional two percent increase, bringing the total approved salary adjustment to 12 percent.
Meanwhile, Executive Secretary to the Director-General, Lawyer Omaru Farouk, has defended the Authority’s position, describing the 12 percent offer as a fiscally responsible compromise amid mounting financial obligations.
According to him, the current administration inherited several financial and compliance challenges, including an unpaid eight percent utility allowance approved in 2024 and a separately negotiated five percent salary increase, which together amounted to an effective 13 percent adjustment for staff last year.
Lawyer Farouk said the Authority was also required to absorb tax liabilities exceeding GH¢5 million after the Ghana Revenue Authority identified incorrectly applied income tax rules covering the period between 2016 and 2022.
He noted that the NLA has since implemented the correct tax rates and resumed the timely payment of statutory deductions, including SSNIT and Provident Fund contributions, while introducing a health insurance scheme for staff and their dependents.
The Executive Secretary further revealed that management sought guidance from the Fair Wages and Salaries Commission during the salary negotiation process and considered the 12 percent increase a sustainable balance between staff welfare and the Authority’s financial capacity.
He added that management is pursuing measures aimed at increasing revenue generation, including a partnership with Fidelity Bank to deploy modern point-of-sale terminals across the country, a move expected to improve the Authority’s financial performance in the coming years.
Despite the revised offer, the union rejected the proposal, declared a deadlock in negotiations and referred the matter to the National Labour Commission (NLC) for resolution.
Management further revealed that it had formally sought guidance from the Fair Wages and Salaries Commission on February 11, 2026. In a response dated June 11, the Commission reportedly advised the Authority to implement an eight percent salary increase based on its assessment of the NLA’s financial capacity.
According to the statement, the local union later served management with notice of its intention to embark on a sit-down strike and demonstration, leading to the industrial action that began on Monday.
The Authority said it is currently engaging the National Labour Commission to facilitate an amicable settlement through arbitration and expressed hope that workers would return to the negotiation table.
Management also assured lotto patrons, Lotto Marketing Companies, Private Lotto Operators (PLOs), third-party collaborators and other stakeholders that it remains committed to carrying out its mandate of generating revenue for national development despite the ongoing dispute.
The latest statement comes after the NLA Local Union announced a sit-down strike, accusing management of delaying salary negotiations, failing to adequately address staff welfare concerns and seeking to pass the burden of historical payroll and tax discrepancies onto employees.
The industrial action has set the stage for further engagement between management, the union and labour authorities as efforts continue to resolve the dispute.
Story by Osman Issah Abadoo
