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Home Business & Economy

Unions suggest 18% pay raise for civil servants

by editor
March 8, 2023
in Business & Economy
7
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Trade unions have petitioned Prime Minister Saara Kuugongelwa-Amadhila to award civil servants an 18% salary increment for 2023/24 and 2024/25 financial years.

The country’s leading trade unions, the Namibia Public Workers Union (NAPWU) and the Namibia National Teachers Union (NANTU), in their submission said they were very cognisant of various economic factors such as inflation, GDP and overall growth. 

“Given a comprehensive economic analysis of the economic growth and performance; inflation as well as the global and local outlook, the two unions are proposing for the improvement of salaries and other benefits for 2023/2024 and 2024/2025 financial years. Based on that, we are proposing a housing allowance for management cadres to be increased by 8% and for low ranking staff to increase by 20%. Whereas transport should be adjusted to N$7 per kilometre, and 20% for staff below management”

“For 2024/25, we are proposing that salaries should be adjusted by 10% across the board,” read part of the submission signed by Petrus Nevonga (NAPWU) and Loide Shaanika of NANTU.

“Our experiences have shown that the government projected income has been presenting a deficit outlook in relation to the projected expenditure. Henceforth, our proposal for salaries and other benefits improvement for civil servants are submitted moderately, taking that situation into account.”

This comes as President Hage Geingob has bemoaned the negative impact of the government wage bill, proposing a rationalisation exercise, amod indications the headcount was gobbling approximately N$30 billion annually.

Last year, after a protracted negotiation, amid threats of a nationwide strike, the government agreed to a 3% increase in basic salary across the board, an 11% in housing allowance for civil servants below management level and a 14% on transport allowance for all civil servants at cost of N$ 924 million.

Initial union demands could have set the government back by N$3.1 billion, but Shiimi and Information and Communication Technology (ICT) Peya Mushelenga warned that it would drive the national debt higher.

The unions in their current proposal have further suggested that the provision of housing should be undertaken by doing comparative study on the provision of houses by governments in the Southern African Development Community (SADC) region, with the purpose to provide the best alternative solution to civil servants.

They are further lobbying for a similar study to be conducted for medical aid.
“This will help to curb costs and provide the best alternative to the current medical aid provision to civil servants by the government. This study should also include the possible improvement of the national health facilities and the procurement of advanced medical equipment country-wide as part of cost cutting measures and improvement of provision of public health services to all citizens.”

“This should enable civil servants, members of Cabinet, members of Parliament and members of the regional and National Councils to receive medical services from the state medical facilities including admission by private doctors to avoid exorbitant costs charged by private health providers. However, specialized cases where possible may be treated with an exception.”

 

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