Addis Abeba – The Confederation of Ethiopian Trade Unions (CETU) has formally requested that the government issue guidelines for wage adjustments applicable to private sector employees.
This appeal follows the government’s recent announcement of salary increases for public sector workers, a decision aligned with the implementation of new macroeconomic reforms.
Prime Minister Abiy Ahmed recently announced a salary adjustment for public servants, which is expected to cost the government over 90 billion birr. Under this adjustment, the lowest-paid employees, who currently earn 1,500 birr, will receive a 300% increase.
Ayalew Ahmed, Deputy President of the CETU, informed the media that, while salary adjustments for public sector employees have been ratified, private sector entities are currently awaiting government-issued guidelines to implement corresponding wage increases. These adjustments, Ayalew emphasized, should be contingent upon individual companies’ financial capabilities.
He further expressed concern regarding the mounting financial burdens faced by workers due to the escalating cost of living.
A recent study by the International Labor Organization (ILO) found that the median monthly wage in Ethiopia is 3,000 birr (approximately $51.96) and indicated that low wages are contributing to worker dissatisfaction.
The study reported that nearly half (48%) of Ethiopian workers in foreign-owned apparel firms left their jobs due to inadequate compensation.
The union leader advocated for equitable compensation practices and urged the government to collaborate with private sector employers in addressing this matter.
Ayalew emphasized the imperative for a robust legal framework to safeguard the rights of workers including the setting of minimum wage rate at a national level.
The revised labor proclamation, approved by parliament in 2019, provided for the creation of a board to determine and revise the minimum wage. Draft regulations outlining the board’s powers and responsibilities were prepared and submitted to the Council of Ministers. However, CETU reports that little progress has been made since then. AS
