October 3, 2024

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ethiopian finance minister ahmed shide

Ethiopia Proposes Massive Salary Hike for Government Employees

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The Ministry of Finance of Ethiopia has requested approval from the Council of Ministers for a salary hike for government employees. They are proposing a raise of 5% to 332% for around 2.4 million public workers. If the Council approves this increase, it will take effect on September 11, 2024.

In a letter dated September 4, 2024, addressed to the Prime Minister’s Office, Finance Minister of Ethiopia Ahmed Shide outlined the proposed salary hike and noted that an additional budget of 91.4 billion birr would be required. Before presenting this proposal to the Council, the National Macroeconomic Committee reviewed the findings.

The proposal indicates that 2.4 million government employees will benefit from the salary changes, including 2.3 million federal workers, state police, members of the Ethiopian Defense Forces, and Federal Police.

Reportedly, nearly half of government employees are living in extreme poverty and are struggling with rising living costs. The study recommends a 332% salary increase for low-income workers to help address their financial difficulties.

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