Ethiopian Ministry of Finance Raises Public Sector Salaries

The Ethiopian government has announced a significant increase in salaries for public sector employees, totaling 91.4 billion birr. This increase will benefit 2.3 million federal and regional civil service workers, including 56,000 candidates. It will also include regional and federal police, defense forces, and security personnel who are not counted for national security purposes.

The Finance Minister stated that this increase in salaries aims to protect low-wage workers in the public sector from the rising cost of living. However, the statement implies that the increase may not be enough to address ongoing economic challenges.

Two days ago, civil servants in Ethiopia opposed this new salary increment plan. They argue that the proposed adjustments do not adequately address the rising cost of living. They believe the current plan does not adequately tackle their financial challenges amid rising living costs.

Last week, the Ministry of Finance submitted the proposal to the Council of Ministers. It suggested salary increases for civil servants ranging from 5% to 332% across various pay brackets.

With this adjustment, the minimum salary for government employees will rise to 4,760 birr, a staggering 332.7% increase from the previous minimum of 1,100 birr. The maximum salary will increase from 20,468 birr to 21,491 birr, reflecting a 5% rise.

Despite these changes, about 47.9% of employees still earn less than 6,000 birr, leaving many families in severe poverty. Additionally, 41% earn between 6,000 and 10,600 birr, placing them in normal poverty, while those making over 10,556 birr also face financial difficulties.

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