In a recent speech, the Prime Minister of Ethiopia, Abiy Ahmed, revealed an important salary hike for government employees as part of Ethiopia’s wider macroeconomic reforms. This initiative is a direct response to the economic pressures caused by inflation, which have hit low-income workers particularly hard.
The Prime Minister announced that employees earning as little as 1,500 birr per month will see their salaries rise by an extraordinary 300%. This unprecedented increase is aimed at reducing the financial strain on these workers during a period of economic transition.
This announcement came shortly after the Ethiopian government decided to float its currency, resulting in a 60% depreciation of the birr. This currency shift has notably impacted living costs, especially for those with lower incomes. To facilitate these wage reforms, the government has set aside over 90 billion birr.
While the primary focus is on salary hike for lower-income employees, those earning more than 25,000 birr will not see immediate changes to their pay.
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