Central Bank advises against govt salary hikes
Bank of Namibia governor Johannes !Gawaxab says government is simply in no position to grant salary hikes to civil servants, adding that its fiscal space is limited.
Civil servants last enjoyed a salary increase in 2016, whereafter government opted for fiscal consolidation, tightening the screws on its spending.
!Gawaxab said while civil servants are entitled to salary increases, there is simply no money to pay them more.
“In as much one understands, there is sympathy, there is empathy for that; the fiscal space is quite limited and the country is on a fiscal consolidation path, so where any organisation goes and borrows to grant salary increases, that is unsustainable,” he said.
Government’s wage bill - as a percentage of its total expenditure - was also high, in his assessment.
“The wage bill, as a percentage of total government expenditure, was about 40.8% on average since 2000, 2001. Currently, if you look at how much we pay for salaries, if you take the total expenses of the government, we pay N$43 out of N$100 for salaries, which is quite high,” he said.
Deadlock
Deliberations between the Namibia Public Workers Union (Napwu), the Namibia National Teachers’ Union and government proved fruitless, with Napwu general secretary Petrus Nevonga in December expressing dissatisfaction at the state’s insistence on a 0% increment for civil servants.
“It’s unfortunate that they have not offered anything, taking into account that for the past three financial years, civil servants have not received a salary increment and again they are maintaining their position of zero offer. It’s not pleasing at all,” he said.
The unions had proposed a 10% increment for the 2021/2022 financial year as well as an increase in kilometre rate to N$7. They further submitted increases of 10% for motor vehicle allowance, 10% for transport allowance, 9% for housing allowance and 25% for homeowners’ schemes for staff members.
Civil servants last enjoyed a salary increase in 2016, whereafter government opted for fiscal consolidation, tightening the screws on its spending.
!Gawaxab said while civil servants are entitled to salary increases, there is simply no money to pay them more.
“In as much one understands, there is sympathy, there is empathy for that; the fiscal space is quite limited and the country is on a fiscal consolidation path, so where any organisation goes and borrows to grant salary increases, that is unsustainable,” he said.
Government’s wage bill - as a percentage of its total expenditure - was also high, in his assessment.
“The wage bill, as a percentage of total government expenditure, was about 40.8% on average since 2000, 2001. Currently, if you look at how much we pay for salaries, if you take the total expenses of the government, we pay N$43 out of N$100 for salaries, which is quite high,” he said.
Deadlock
Deliberations between the Namibia Public Workers Union (Napwu), the Namibia National Teachers’ Union and government proved fruitless, with Napwu general secretary Petrus Nevonga in December expressing dissatisfaction at the state’s insistence on a 0% increment for civil servants.
“It’s unfortunate that they have not offered anything, taking into account that for the past three financial years, civil servants have not received a salary increment and again they are maintaining their position of zero offer. It’s not pleasing at all,” he said.
The unions had proposed a 10% increment for the 2021/2022 financial year as well as an increase in kilometre rate to N$7. They further submitted increases of 10% for motor vehicle allowance, 10% for transport allowance, 9% for housing allowance and 25% for homeowners’ schemes for staff members.
Comments
Josephat Imalwa
Teachers all tools down
Harry Tjihukununa
If that is the case then fuel should not be hiked and some taxes removed and the irony is that he increased the repo rate just recently.