Ethiopian Govt Workers Struggle as Delayed Salary Hikes Deepen Cost-of-Living Woes

In October 2024, the Ethiopian government announced salary increases for civil servants, aiming to alleviate the financial strain caused by the rising cost of living. The adjustments ranged from 25% to 41%, with the most significant increases intended for lower-income employees. Dr. Mekuriya Haile, the Civil Service Commissioner, emphasized that the new wage structure would be implemented immediately, with payments commencing that month. The Ministry of Finance had dispatched the necessary budget and implementation instructions to the regions, city administrations, and federal institutions.

However, as of December 2024, many government employees have yet to receive these promised salary adjustments. Reports indicate that the implementation has been delayed indefinitely, leaving civil servants in a state of financial uncertainty. Some government officials have cited the need for additional time to compile employee information as the reason for the delay, while others suggest that the salary increases may be linked to recent competency exams.

The delay in salary adjustments has exacerbated the financial hardships faced by government workers, who are already struggling with the soaring cost of living. In regions like the Wolaita zone, public servants have experienced salary delays for months, with payments often made in installments, withholding up to 40% of their wages. This situation has forced many employees to rely on payday loans and has heightened anxiety among the workforce.

The Confederation of Ethiopian Trade Unions (CETU) has urged the government to expedite the salary adjustments, emphasizing the need for swift action to support civil servants amid the economic challenges.

The delay in implementing the salary increases has also raised concerns about potential inflationary pressures. Dr. Mekuriya had previously cautioned the business community against unjustified price hikes in response to the salary adjustments, warning that such actions could erode the intended benefits for employees. Regulatory bodies were expected to monitor and address such practices to ensure that the salary increases would effectively alleviate the financial burdens on civil servants.

As the situation unfolds, government employees continue to await the fulfillment of the promised salary adjustments. The delays have not only impacted their financial well-being but have also led to increased frustration and decreased morale among the workforce. The government’s commitment to addressing these concerns and implementing the salary adjustments promptly will be crucial in restoring confidence and supporting civil servants during these challenging economic times.