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Junedin Sado reveals percentages of the salary adjustment

( – Ethiopian Civil Service Minister Junedin Sado announced percentages of the salary adjustment that will be effected as of this month. Government employees will enjoy a minimum of 35 percent pay raise as of this Ethiopian month (after 12 days) and the maximum is set to be 39 percent, Minister Junedin told journalists in a press conference he gave late Today January 26, 2011.

The salary adjustment will raise the current 320 birr minimum monthly salary set for government employees to 420 birr, according to the Minister. The government has allotted 4.7 billion birr budget for the remaining six months of the year, Minister Junedin told journalists. “The government has allotted the amount from its treasury, no foreign aid or loan is considered for the salary adjustment,” he replied to the journalists’ query.

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  1. Barii said,

    January 28, 2011 @ 4:38 am

    The measures undertaken by obbo Junedin Sado and the TPLF/EPRDF regime are contrary to the fundamental principles in economics that have proven potent in fighting inflationary pressures. Either Meles must have the worst of economic advisers or he is engaged in foolhardy appeasement scheme. The second scenario is the most likely one.

    Standard economic theories and empirical studies dictate that policymakers need to reduce money supply in the economy when inflationary pressure gets out of control. The TPLF/EPRDF regime is doing the opposite by increasing the salaries of civil servants: increasing money supply.

    Even taking the regime’s claim of market corruptions at face value, the existence of shortage economy is undeniable for a number of goods (commodities) in Ethiopia. Setting price ceiling is also backfiring on the regime, particularly in regard to imported goods. The regime does not seem to be in control of the supply of goods, be that directly or indirectly via regulations.

    The value of money is its purchasing power. Under inflationary pressure, increasing salaries just adds fuel to the problem. Thus unless the shortage economy is dealt with effectively, salary increase will not be more than short-run feel-good appeasement for the uninformed civil servants. The increased money supply floating in the market via salary increase only ends overheating the already shortage-driven market. The solution lies in improving the purchasing power of Birr than adding more Birr to circulate in the market.

  2. Anoole said,

    January 28, 2011 @ 12:59 pm

    I think , Ato Males worried about gov. empoloyees aganist him. That the idea he saw in his mind. It is not about economy of ethiopia/

  3. k said,

    January 30, 2011 @ 12:43 am

    I think the goverment of ethiopia is in big problem. increasing salary may not be the solution for ethiopian people after all there is no increament if we compare it in dollar value. every thing is now related to dollar. even the food staff produced in ethiopia ,it needs fertilizer, cultivating instruments etc. there is for sure shortage of food staff in the world all food staffs are in minimum 5-7 birr more than the goverment set price and that also hinder the traders to import the staffs and it results shortage of staffs in the market. putting those traders in jail may not bring any solution. if they work they should get some profit: in my opinion goverment should reform the marketing system