The government will have to fork out an additional N$1.7 billion for the 2024-2025 financial year to cover the 5% salary increment for civil servants at Grades 1 to 13, Secretary to the Cabinet George Simataa has revealed.
Simataa said those falling in the remuneration bracket of 14 and 15 will receive a flat N$600. He said about N$500 million will be spent on back pay under the 2023-2024 financial year, dating back from April.
This comes after the Government Negotiation Team, the Namibia National Teachers Union (NANTU) and the Namibia Public Workers Union (NAPWU) agreed on a remuneration and benefits increase, having inked the agreement on Thursday, mainly focused on benefits.
“We have looked at all the cost benefits and problems we are experiencing in the country, from drought, unemployment, and health sector, in addition to an array of other conditions. These issues were taken into account by the leadership of government and unions, and it was agreed that it is appropriate to give these adjustments,” stated Simataa, when asked regarding the ballooning wage bill, and whether the government has rescinded its containment measures.
In addition, Simataa said the government will not be abandoning its cost-saving measures aimed at containing the wage bill, which was already implemented in 2018. Some of the measures relate to limiting travel, a moratorium on employment and reducing overtime.
“These measures are still in place, even if we are aware of trying to contain the wage bill, we have human beings that have families to take care of, and we need to balance this. So, careful consideration was effected, however, there are still other ways that are still in place but cannot sacrifice the public servants. That is why the government agreed to a 5%, even though we take cognisance that it is below inflation,” he stated.
“Yes, we did not have the funds back then, however, things changed and here we are talking about human beings who have been tormented by constant inflation, going through difficulties, thus, as a caring employer, the State considered these issues and found appropriate means to deal with this matter. Thus, N$1.7 billion for next year is catered for in the 2024 budget, including the immediate expenditure which was already contained in the 2023/24 budget. So, everything is within the budget and authorised expenditure.”
Simataa was joined by NAPWU leader Petrus Nevonga and Loide Shaanika of NANTU, and scored on their proposed demands, with the exception of the 5% granted for 2024/25 falling short of the 10% initial proposal.
“All effective from 1 April 2023, a 20% increase on the housing allowance was agreed, as well as a further 20% increase on the transport allowance for staff members below the management cadre. Other benefits include an 8% increase on the motor vehicle allowance (capital and running costs) for staff members in the management cadre,” said Nevonga.
In addition, the parties agreed on a 100% increment in housing subsidy.
Currently, Namibia has about 107,000 public servants, inclusive of the security cluster, of which the total expenditure on public servants stands at above N$30 billion.
Last year the government avoided a national shutdown of civil servants following protracted negotiations in which it found itself increasing its offer from the initial N$334 million to over N$924 million in remuneration and benefits. That amount was broken down to 3% basic salary increment across the board, housing allowance for civil servants below management by 11% and transport allowance by 14%.
