Capital Ethiopia Newspaper

Tele raises pay, implements new billing system

After two years of delay, employees at the state monopoly Ethio Telecom (ET) will be seeing a 30 percent raise in pay on average.

The state telecom provider announced late last week that it has increased the salary of its employees by an average of thirty percent and offered them back payments from July 8, 2011.

Even though Ethiopian Telecom is allowing employees to receive back pay, some are still not happy.


They argue that as Ethio Telcom was established in December 2010 they should be getting back pay starting from that time when they were promised a raise.

Previously, the state telecom [Ethiopian Telecommunication Corporation], which is one of the major profitable enterprises, was increasing employees’ salary every year. However, over the past budget year staff  have not seen any rise in pay.

The current payment that shall be disbursed starting from this week, considers only this budget year starting from July 2011. However, some employees said that the past budget year (July 2011- July 2011) should also be included in the back payment scheme and disagreements have arisen over allowances and adjustments.

The new salary increment is based on seven pay grades and 14 working steps. Working complexity, employee’s capability, working conditions, autonomy and impacts of the decisions are included on the level of the salary adjustment, according to ET’s statement.

ET has also announced that it has successfully launched a new financial system /ERP/ (Enterprise Resource Planning) based on the latest technology – Oracle Finance, which has gone live as of December 1 after only six months of development.

“This new application is based on Ethio Telecom’s new processes, and will bring increased efficiency to the company while complying with international standards,” the ET statement explained.

This project is another example of the company’s transformation, optimizing resources and paving the way to more automation and modern practices, according to the statement.

The application of this modern tool, which can apply a semi-automatic workflow, would enable Ethio Telecom to undertake the validations of any work proposal or plan on-line instead of the age old paper-based work validation which is tiresome, traditional and time taking.

The ERP tool is built based on new industry standard process and policies and new accounting standards, in-line or close to world standards.

The ERP, which is a new system for finance, would enable the revenue recognition according to traffic and it is not based on cash collection. It will allow bills to be recorded as soon as they are received from suppliers. It also provides a new method of working with the company’s regional and zonal finance teams as well as with internal suppliers and customers.

Ethio Telecom has also implemented a new system to enable all prepaid clients (blue or green voucher card users) to charge their account with similar cards as of December 7.