Capital Ethiopia Newspaper

Pier Diem progresses

Regional and federal offices are including the newly revised per diem rates in their budgets that are expected to consume a much greater amount of money than they are used to spending on the compensation.
The new per diem rate was approved by the Councils of Ministers’ two months ago and will be implemented at the beginning of the coming fiscal year.
Mohamed Seid, public relation head of the Ministry of Civil Service, told Capital that the amount of new per diem will be prorated depending on locations, economic statues of the regions and the inflation rate of towns. 
The new adjustment that will be implemented from July 8, 2012 was studied by the government for a long time. According to the adjustment, the new per diem will range from 208 to 250 birr for governmental employees when they are assigned to other working places than their original location.
The government has been planning to revise the rate of the daily allowance for employees who work out in the field for different governmental duties. However until now, a new rate has not yet been applied despite the past year’s inflation and disgruntled employees.
Currently, the maximum per diem rate is 70 birr and 45 birr is the minimum, which subsequently was set based on the country’s economic situation about two decades ago. The high inflation rate  observed in the past years coupled with the country’s current economic condition, the existing per diem is undeniably insufficient for employees. To fill the gap, some governmental offices were rendered to pay extra per diem for employees without a legal framework. 
The Civil Service Ministry that conducted the revision study facilitated open discussions with stakeholders and relevant regional and federal government offices before disseminating its final decision.
The public relation head said that although the new per diem adjustment is expected to consume a significant amount from the total government budget, it aims to cover the significant costs that help employees to be more effective in their work.