The Council of Ministers of Ethiopia has approved the significant wage hike for government employees, particularly benefiting those on minimum wage. Minister of Finance Ahmed Shide shared this development. Moreover, he said this increase will take effect from October 1, 2024.
An additional budget of 92 billion Birr has been allocated by Ethiopia to facilitate this wage hike. Currently, the minimum wage for government employees is set at 1,500 birr. However, under the new guidelines, this amount will rise dramatically to 6,000 birr, marking a substantial increase of 300%.
This salary adjustment has been sent to the House of Representatives for further review as it is approved by the Council of Ministers. The government aims to provide improved living allowances and financial assistance to lower-income workers as part of its broader economic strategy.
At the start of September 2024, when the Ethiopian Ministry of Finance submitted this proposal, civil servants opposed this new salary increment plan. They argue that the proposed adjustments do not adequately address the rising cost of living. In a letter dated September 4, 2024, addressed to the Prime Minister’s Office, Finance Minister Ahmed Shide outlined the proposed salary hike.
After civil servants, Ethiopian pensioners also rejected the new salary revision announcement by the government. Pensioners claim that they have been totally neglected in the new salary enhancement scheme. “The pensioners served the country and paid the price; now they are forgotten,” they complain.
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