Addis Ababa, Ethiopia – The Federal Civil Service Commission has announced that the government will implement a new round of salary increases for civil servants beginning in September 2018 (Maskaram 2011 E.C.). The reform, backed by a 160 billion birr budget, is part of ongoing efforts to improve the living conditions of government employees and address economic imbalances.
According to the Commission’s statement, Ethiopia’s recent economic restructuring program aimed to address two major challenges: stabilizing the national economy and reducing accumulated debt, while at the same time laying a strong foundation for long-term prosperity. The reforms have boosted the incomes of farmers, pastoralists, traders, and private sector actors. However, salaried workers, particularly government employees, have not benefited proportionally.
The Commission noted that with the growing number of civil servants, the government’s wage bill has steadily risen, now accounting for 30–32% of total public expenditure. Yet salaries have remained low compared to rising living costs. In 2017, the government allocated 91 billion birr to raise the pay of low-income employees despite fiscal pressures from broad economic reforms.
To further ease the burden on workers, the government also revised the income tax law (unchanged since 1994 E.C.), increasing the tax-free threshold from 600 birr to 2,000 birr, thereby improving purchasing power.
Key Elements of the 2018 Salary Adjustment:
- Minimum salary for government employees raised from 4,760 birr to 6,000 birr.
- Maximum salary increased from 21,492 birr to 39,000 birr.
- Starting salary for degree holders raised from 6,940 birr to 11,500 birr.
- A review will also be conducted for public sector employees outside the core civil service.
With these changes, Ethiopia’s annual government salary expenditure will reach 560 billion birr. The Commission emphasized that while the increase is significant, it remains limited, as broader solutions—such as housing provisions and health insurance—are also needed to sustainably improve civil servants’ welfare.
The Commission added that future salary adjustments depend on economic growth. For example, a 1% increase in tax revenue could generate more than 300 billion birr in additional national income, strengthening the government’s capacity to support employees.
Calling for unity and dedication, the Federal Civil Service Commission urged all civil servants to commit their knowledge, time, and energy to national growth, reminding them that just as past generations sacrificed for Ethiopia’s freedom, today’s generation must be remembered for advancing its development.
