Civil servants get massive pay increases

GOVERNMENT is to give a substantial 24 per cent salary increase to the country’s 84 000-strong civil servants at an estimated cost to the country of about N$1 billion.

As most countries worldwide are getting to grips with trimming salary bills, Government’s negotiating team and the two bargaining unions announced on Friday that they had sealed a 24 per cent salary increase for civil servants from grade 1C up to the management cadres – staggered over the next two financial years.
Cleaners and other more lowly paid staff at level 1A and B will get 28 per cent. Provisional estimates indicate that the new increase will raise Government’s wage bill to around N$1 billion – excluding the money spent on travel and subsistence allowances for all civil servants.
The current budget for civil servant salaries is N$7,7 billion. It went up by close to N$1 billion (14,6 per cent) over the previous year and makes up 34,3 per cent of total Government expenditure, which is N$22,46 billion for the current financial year.
When civil servants received a general salary increase of 2,85 per cent in 2000, it cost the Government around N$140 million. That agreement increased the Government’s wage bill by seven per cent.
Two years ago in the 2006-7 financial year, Government needed around N$196 million to cater for pay increases.
This year’s increase is a record. Government is likely to have to find external funding for some capital projects now that it has agreed to the 24 per cent salary increase for a majority of the country’s 84 000 public servants.

POLITICAL FACTORS

Not since Independence has Government been so generous to civil servants.
‘The only reason it happened was because morally it would be unjustified not to give them such an increase after the politicians got 24 per cent. They realised that they can’t antagonise the workers in an election year,’ according to one observer.
The source said the increases were not a result of the skills of unionists but as a result of ‘bad timing’ by State House in increasing the salaries of political office bearers.
‘In fact, the unions should have pushed for around 16 per cent a year for the lowly paid guys. As it is now they got two per cent more than the politicians. You can’t call that a victory for the civil service,’ one source said.
In terms of the new agreement, the salary for a cleaner or gardener at entry level who earns N$13 239 will increase to N$15 092 or by around N$155 a month.
A clerk at grade 3A level level one who earns N$100 260 a year will have that increased to N$112 291,20 or about N$12 031 a year.
That also translates to around N$1 000 a month before tax.
The increase also means that a Deputy Director at 4A band (management cadre) will have an increase of around N$21 415.32 a year on the current N$178 461 entry level salary.
That means an increase of around N$1 784.61 a month over and above the 10 per cent vehicle allowance. Vehicle allowances for this band, as advertised in Government job advertisements, is N$71 064 a year and housing allowance at N$48 000 a year.
It was not clear where Government will get the millions to pay for the increases.
‘As it is now, we are likely to borrow externally to finance the capital projects,’ said one observer.
The 24 and 28 per cent increases are over and above the housing and transport allowances and subsidies.
Those in group one of the housing allowance scheme got a N$200 increase on the N$100 they already get while those in group two now get N$400 after a N$150 increase. The last group three got a N$100 increase to make it N$500.
Those in the management cadre can now buy bigger houses after their threshold was raised from N$300 000 to N$450 000.
Staff members on transport allowances will now also earn N$400 instead of N$220 or N$198. It will be increased by another five per cent with the 2010/2011 financial year.
The civil servants with vehicle allowances had theirs increased by 10 per cent while the Government also agreed to adjust the kilometre rate from N$1 to N$2,50 per kilometre.

‘TOO BLOATED’

‘It is a fair increase given the economic problems the world is experiencing and I am happy for the civil servants. Of course it is not enough but it is fine,’ said DTA MP McHenry Venaani.
He said the civil service needs to be reformed as it is ‘too bloated’ and, in its current form, is eating away at Government finances.
‘President (Hifikepunye) Pohamba needs to come up with a 10 to 15 year reform programme that will not just put people in the streets but lessen the burden on the Government.
‘We all know that the Government is the largest employer,’ he said.
Venaani said a labour crisis was looming and has already started taking its toll in the mining sector.
‘There is a need for the Government to strategise on how it will deal with that,’ he said.
The Namibia Public Workers’ Union and the Namibia National Teachers’ Union, together with the National Union of Namibian Workers, were set to call a media briefing this week to announce their ‘victory’.
The agreement for the salary increase, which takes effect when the new Budget is introduced, was signed by Cabinet Secretary Frans Kapofi, Peter Nevonga (Napwu) and Basilius Haingura (Nantu).
In December President Pohamba gave political office bearers a 24 per cent salary increase.
They were to get 12 per cent as soon as the decision was gazetted and another 12 per cent when the National Budget is approved for the next financial year in April this year.
The increases will be for the Prime Minister, Deputy Prime Minister, Ministers, Deputy Ministers, Speaker of the National Assembly, Chairperson of the National Council and all members of the National Assembly as well as the National Council.
The President’s decision to increase the salaries of politicians by 24 per cent was taken after he considered a report presented by the Public Office-Bearers (Remuneration and Benefits) Commission. christof@namibian.com.na