News: Delayed salary increments leave gov’t workers struggling amid rising cost of living
Addis Abeba – Despite a salary adjustment for civil servants was announced to take effect from October, government employees in both regional states and the capital city have reported that they have yet to receive the increase.
In an interview with Addis Standard, Ashagrie Kelemu (name changed for security reasons), a government employee in the Tarma Ber district, North Shewa Zone, Amhara region, stated that while relevant government officials have collected data on civil servants’ current salaries and job positions, he and his colleagues have not received their adjusted salaries.
He explained, “I am aware that authorities are preparing to issue a letter regarding the salary increase. However, we have not received any official confirmation yet.”
Ashagrie currently earns a gross monthly salary of 10,150 birr. Once the salary adjustment is implemented, his salary will increase to 11,634 birr, resulting in a net increase of 900 birr.
“If the increase had been implemented, it would have alleviated some financial burdens, particularly in covering my five-year-old daughter’s school fees,” he told Addis Standard.
Amid the delay in the salary adjustment, Ashagrie expressed concern over the rising cost of living, which he noted has increased significantly in recent months.
“The price of food has increased substantially compared to a few months ago,” he explained. “Additionally, transportation costs have been steadily rising.”
Two government employees working in the Limi Kura and Bole sub-city offices in Addis Ababa informed Addis Standard that they have not yet received the promised salary increase.
They noted that rumors circulating within their offices suggest the salary adjustment, including back payments from October, might be issued by the end of December. However, they emphasized that no official letter confirming this has been received.
Speaking at a press briefing a month ago, Finance Minister Ahmed Shide announced that government institutions that have “finalized their payroll adjustments” have received supplementary funding in accordance with the newly approved salary scale for civil servants.
He also confirmed that regional states are also receiving “sufficient subsidies” to cover these salary hikes for the next three months.
“Government workers who have already been paid, as well as those set to receive payments, will be back-paid starting from October 2024,” he stated.
Ahmed explained that the salary adjustment for government employees became necessary following the macroeconomic reform introduced in late July 2024, which is “expected to place additional financial strain on fixed- and low-income earners.”
“The salary adjustment aims to mitigate the rising cost of living for civil servants,” he noted.
A study conducted by the Ministry of Finance and the Civil Service Commission reveals that, out of the country’s 2.4 million civil servants, 1.1 million (47.94%) earn less than 6,000 birr per month, placing them below the extreme poverty line.
Another segment, consisting of 946,306 civil servants, earns between 6,000 and 10,000 birr per month and is classified as living below the standard poverty line.
Furthermore, approximately 253,297 government employees earn a monthly income exceeding 10,000 birr.
Abebech Dinku (name changed for security reasons) is one of the civil servants classified as living “below the poverty line.”
Earning a monthly salary of just 1,300 birr, she works in cleaning services for the Fasilo sub-city in Bahir Dar. In an interview with Addis Standard, Abebech described the significant challenges she faces, emphasizing that her minimal income makes it impossible to meet her daily needs.
“I have a little child who is still an infant. Life is extremely hard,” she explained. “We’re just surviving, holding on to our health. There’s no quality of life to speak of.”
Abebech mentioned hearing rumors from colleagues about a potential salary increase but noted that she has not seen any change in her income.
“Many are saying it will come by the end of December,” she added.
She expressed hope that if the promised increment is implemented, even a modest increase could help her cover some of her essential expenses.
The government has implemented a salary adjustment primarily to alleviate the financial strain experienced by low-income earners, such as Abebech, amidst rising living costs.
The adjustment will result in a significant salary increase of up to 332% for lower-income civil servants. This will raise the minimum monthly salary for government employees from 1,100 birr to 4,760 birr.
Conversely, higher-income earners, currently receiving a maximum monthly salary of 20,468 birr, will receive a 5% increase, amounting to 1,023 birr.
A month ago, Addis Standard reported that many federal employees and workers in the Addis Ababa municipality had yet to receive the adjusted salaries.
However, Addis Standard has now confirmed that government employees at the federal level began receiving the salary adjustment starting from the previous month. AS
