New per diem rate to be applied

0
417

 

Employees in the federal and regional public offices will enjoy a new per diem rate starting from July 08, 2012. Approved by the Councils of Ministers’ in January 2012, the revised per dim rate is expected to have a significant effect by easing the servants’ economic burden..

The new per diem rate for civil servants was made public last Tuesday at House of Peoples’ Representatives by the Minister of  Civil Service, Junedi Sado.

 

The new arrangement adjusts the daily per diem payment a worker gets; low payment strata workers have increased from 82 to 150 birr, middle income strata employees from 92 to 173 and upper strata employees from 99 to 225 birr respectively.

The government has been planning to revise the rate for employees who work out of their home town for different various governmental duties for quite a long time. Despite high inflation rates that have weaken the purchasing power of the birr; there had been no increase in per diem rates for years.

The new per diem adjustment is expected to consume a significant amount of the total government budget.

The old per diem rate was set based on the country’s economic reality about two decades ago. The high inflation experienced in country over the past years has deteriorated the economic condition of many workers, which made the older per diem rate quite insufficient in relation to associated traveling out of home town. Some governmental offices had been paying extra per diem for employees even though they were not required to do so as per the finance regulation of the country. Such situations moved the government to fill the gap.

According to experts, 92 percent of the total government civil servants are working in regional offices. Thus, the new per diem rate is expected to affect a large amount of the budget of regional states.

With this per diem adjustment more than 206, 334 registered federal government employees and 811 thousand regional civil servants and government appointees will be beneficial.