Civil Servants to get a raise


For the second time in the past two and a half years civil servants will get a pay raise.
Early last week the parliament approved a supplementary budget for the 2016/117 fiscal year which included a salary increase for public employees.
According to the supplementary budget proclamation, almost half of the 18.2 billion birr amended on Tuesday January 17 has been allocated for salary increases.
In the 2014/15 fiscal year the government increased the pay rate for civil servants.
The current increase will take effect during the current month of the 2016/17 fiscal year.
Capital spoke with civil servants attending a government sponsored conference. They said that they had heard about the pay hike from meeting chairpersons but did not have detailed information yet.
Parliament approved nine billion birr for salary increases which will begin this month. It was not disclosed how much of that would go to civil servants.
Recently the government has done things to increase the retention rate of specific civil servants. For instance recently there was a salary adjustment for teachers. As of September the Ethiopian Revenue and Customs Authority (ERCA), which is not included in the civil servant pay scale increased its staff salaries by 100 percent.
ERCA has been highly affected by staff turnover and has been taking steps to remedy this situation and keep highly skilled professionals.
Recently the government also introduced a new income tax structure in an attempt to reduce the burden of lower income employees.
According to the amended supplementary budget the additional money is being secured from non tax and capital revenues. The Petroleum Fund has contributed the major share of the supplementary budget from 11.7 billion birr in non tax revenue sources. According to the preamble of the supplementary budget proclamation, 10.2 billion birr is coming from the Petroleum Fund. The 6.56 billion birr secured from privatization proceeds is also allocated for the additional budget allocation. The 1.33 billion birr residual surplus from National Bank of Ethiopia, Ethiopian Petroleum Supply Enterprise and Development Bank of Ethiopia, all contributed one billion, 200 million and 130 million birr respectively.
In addition to raising salaries, five billion birr has been allocated for the recently introduced youth revolving fund. During the opening of the parliament in early October the president disclosed that the government allocated 10 billion birr for the youth revolving fund with the goal of expanding youth employment. Half of the ten billion birr will be released in the coming yearg