Federal Civil Service Commission Announces Salary Adjustments to Support Workers Amid Economic Transition
August 12, 2017
The FDRE Civil Service Commission has announced a comprehensive salary adjustment aimed at enhancing the livelihoods of civil servants, especially those with lower incomes, as part of Ethiopia’s broader economic transformation efforts.
After facing several macroeconomic challenges, Ethiopia is charting a new development course centered on inclusive, multi-sector growth and sustainable prosperity. In 2017, the government allocated 91 billion birr to implement salary increases, despite ongoing fiscal pressures from reforms. Building on this, a new salary adjustment scheduled to take effect from September 2018 will raise the minimum wage from 4,760 to 6,000 birr and increase entry-level salaries for degree holders from 6,940 to 11,500 birr. The top government salary will also be increased to 39,000 birr.
This reform necessitates an additional 160 billion birr, bringing the total annual salary expenditure to 566 billion birr. Additionally, tax brackets have been revised, raising the tax-free income threshold from 600 to 2,000 birr.
Understanding that salary increases alone may not fully alleviate living costs, the government plans to provide further support through improved housing and health insurance schemes. It also commits to taking strict action against unjustified price hikes by businesses.
Overall, this reform underscores Ethiopia’s dedication to equitable growth, dedication to public service, and honoring the contributions of civil servants in building a prosperous future.
