Government Implements Record Salary Overhaul to Enhance Efficiency, Integrity, and Fiscal Stability

Addis Ababa, August 18, 2025 (FMC) — Ethiopia’s Federal Civil Service Commission has announced a sweeping salary adjustment for government employees, effective September, aimed at boosting productivity, improving livelihoods, and reinforcing integrity within the public sector.

The commission said the reform is part of the government’s broader strategy to support civil servants while maintaining economic stability amid ongoing macroeconomic challenges.

Under the revised pay structure, the minimum monthly salary for government employees will increase from 4,760 Birr to 6,000 Birr, while the maximum salary will nearly double, rising from 21,492 Birr to 39,000 Birr. Entry-level employees holding a bachelor’s degree will see their starting salary adjusted from 6,940 Birr to 11,500 Birr. The increment also extends to government workers in sectors beyond the civil service.

The commission noted that implementing the new salary scale will require an additional 160 billion Birr, raising the total annual expenditure on salaries to approximately 560 billion Birr. While acknowledging the fiscal implications, officials emphasized that improving the welfare of public servants is essential for sustaining national development.

The government has called on civil servants to complement the pay reform with diligence and integrity, stressing that combating corruption and enhancing productivity are vital to achieving Ethiopia’s broader economic goals.

To protect the benefits of the salary increase, strict measures will be enforced against individuals or businesses attempting to exploit the reform through unjustified price hikes.

The announcement reflects a comprehensive approach by the government to simultaneously improve public sector welfare, strengthen accountability, and safeguard fiscal discipline — aligning civil servant incentives with Ethiopia’s long-term development and economic objectives.

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