Ethiopia Says Civil Service Pay Reform Costs Reach 290 Billion Birr

Mintesinot Nigussie

The Civil Service Commission says Ethiopia’s recent public sector salary reform has required an additional 290 billion birr in government spending, as wage adjustments continue to reshape the cost structure of the civil service. Commissioner Mekuria Haile (PhD) said the funding requirement stems from salary changes implemented since the 2024/25 Ethiopian fiscal years.

He explained that the reform process has significantly increased budgetary pressure on the government. He broke down the spending, noting that 90 billion birr was required in the 2024/25 fiscal year, while a further 200 billion birr was requested in the 2025/26 fiscal year on top of the existing allocation.

Dr Mekuria made the remarks during a policy dialogue organised by the Good Governance for Africa and the Horn of Africa organisation, held in connection with discussions on civil service delivery and the seventh general election, where political parties participated.

The commissioner said the salary reform was designed to improve the living conditions of government employees, describing it as part of broader changes in public sector remuneration. He also pointed to long-term developments within the civil service system, saying the institution has undergone significant changes in service delivery and administrative structure since its establishment more than 108 years ago.

According to him, further adjustments remain possible as part of ongoing reforms, both in service delivery and pay structures, depending on future policy decisions.

Overall, Ethiopia’s civil service pay reform has incurred a total cost of 290 billion birr, highlighting the significant budgetary implications of public sector wage adjustments.