Public wage bill expected to balloon by N$1,7 billion

Following yesterday’s announcement of new wage and benefits increases for civil servants, the public wage bill for the 107 000-strong civil service is expected to increase by N$1,7 billion in the 2024/25 financial year.

According to Cabinet secretary George Simataa the additional N$1,7 billion needed during the 2024/25 financial year will be catered for by the Ministry of Finance and Public Enterprises.

The N$500 million needed for the current financial year is already included in the current budget.

“These figures are not outside the budget, these are approved expenditures of the government,” Simataa said yesterday.

The increase comes a year after a 3% increase across the board was announced for civil servants.

Simataa said the Namibia Public Workers Union (Napwu), Namibia National Teachers Union (Nantu) and the government took into account the persisting drought situation, unemployment inflation and all underlying issues to determine the increases.

“These issues have been taken into account by the leadership of Nantu and Napwu and the government, particularly at the highest level of Cabinet and it was agreed that it was appropriate to make these adjustments,” Simataa said.

Addressing the government’s claim of lack of funds during the last negotiations, Simaata said things have changed.

“People who are employed in the public service are human beings. They have been going through inflation in this country, going through difficulties. The government of Namibia, as a caring employer, considered these issues and found appropriate ways on how to deal with the matter,” Simataa said.

WHAT’S IN THE PACKAGE?

Announcing the new wage agreement, Napwu secretary general Petrus Nevonga said the negotiating parties have agreed to a flat increase of N$600 per month for staff members on pay grades 15 and 14.

Staff members on pay grades 13 to 1 will receive a 5% increase on their basic salary.

The parties also agreed to a 20% increase on the housing allowance for staff members below management level, 20% increase on transport allowance for staff members below management level and 8% increase on vehicle allowance (capital and running costs) for staff members in management.

All the above increases are backdated to 1 April 2023.

Civil servants who earn N$60 000 per year, will receive an increased housing subsidy of N$3 837 per month, while those earning N$90 000 per year will receive an increased subsidy of N$4 418 per month.

Housing subsidies for those earning N$120 000 per year will increase to N$6 213 per month; those earning N$150 000 per year will get N$7 456 per month, while those earning N$180 000 will get a subsidy of N$8 442 per month and those in the N$210 000 salary band will receive an increase housing subsidy of N$9 648.

Housing allowance for those in management level will also increase based on their different pay grades.

Housing allowance pay grade 4 will be N$10 130 per month; pay grade 3 will be N$10 940; pay grade 2 will be N$11 842 and pay grade 1 will be N$12 818 per month.

Those in pay grade 1C will see an increased monthly housing allowance of N$13 336; pay grade 1B housing allowances will be increased to N$13 875, while those in pay grade 1A will receive N$14 152 per month.

Housing subsidies and allowances will be backdated to 1 October 2023.

“The parties also agreed to undertake a comparative study on best practices for the provision of housing and medical aid for staff members,” Nevonga said.

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