ADDIS ABABA — The Federal Civil Service Commission has announced a major salary increase for civil servants, effective September 2025, marking a significant step to improve living standards and reward public service contributions.
Under the new pay scale, entry-level salaries for bachelor's degree holders will rise from 6,940 Birr to 11,500 Birr per month. The minimum salary for government employees will increase from 4,760 Birr to 6,000 Birr, while the maximum salary will nearly double from 21,492 Birr to 39,000 Birr.
In a statement, the Civil Service Commission said the adjustment is part of the government's ongoing efforts to mitigate the impact of rising living costs while remaining within the country's financial capacity. The revision acknowledges the dedication of civil servants who continue to deliver essential services under challenging economic conditions.
The salary adjustment will require an additional 160 billion Birr, raising the government's total annual payroll expenditure to 560 billion Birr. Officials highlighted that the revision complements the 2025 income tax reform, which raised the tax-free threshold for employment income from 600 Birr to 2,000 Birr per month, further supporting low- and middle-income workers.
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This adjustment follows a previous wage revision in August 2024, which provided substantial increases to lower-paid civil servants as part of broader macroeconomic reforms aimed at cushioning workers from rising costs.
Labor unions and advocacy groups have long called for further reforms, including a national minimum wage and higher tax exemptions. While some proposals were not adopted, government officials emphasized that the new salary scale represents a balanced approach that considers both worker welfare and fiscal sustainability.
The salary revision comes amid Ethiopia's ongoing efforts to strengthen public sector performance and ensure that civil servants are fairly compensated. Analysts say that the new pay scale not only addresses immediate financial pressures but also helps improve morale, reduce turnover, and attract qualified talent to public service.
International studies, including a report by the International Labor Organization (ILO), have highlighted the importance of fair wages in reducing employee turnover and increasing productivity. The government's move aligns with global recommendations to ensure workers can maintain a decent standard of living while contributing effectively to national development.
Civil servants are set to benefit from these changes beginning in September, marking a tangible improvement in both their livelihoods and the broader public service system.
BY STAFF REPORTER
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THE ETHIOPIAN HERALD TUESDAY 19 AUGUST 2025
