Ethiopia Introduces New Daily Allowance and Salary Scale for Government Employees

🇪🇹 Ethiopia Introduces New Daily Allowance and Salary Scale for Government Employees

In a major move to improve the welfare of civil servants, the Ethiopian government has rolled out a revised daily allowance structure and a substantial salary increment for federal employees. The changes, announced in early October 2025 by the Federal Civil Service Commission and the Ministry of Finance, aim to align compensation with current economic realities and enhance service delivery across public institutions.

💼 New Daily Allowance Structure

The Ministry of Finance has officially updated the per diem rates for government employees traveling for official duties. These allowances are now structured based on:

• Job level and rank: Higher-ranking officials receive proportionally higher allowances.
• Destination: Rates vary depending on whether the travel is within Addis Ababa, regional cities, or remote areas.
• Purpose of travel: Training, workshops, and field assignments may have different reimbursement categories.

This update is designed to ensure fairness, transparency, and consistency in how travel-related expenses are reimbursed across ministries and agencies.

📈 Revised Salary Scale for Civil Servants

The Federal Civil Service Commission also announced a nationwide salary adjustment, effective September 2025:

• Minimum salary increased from 4,760 Birr to 6,000 Birr.
• Maximum salary raised from 21,492 Birr to 39,000 Birr.
• Entry-level employees with a bachelor’s degree will now start at 11,500 Birr, up from 6,940 Birr.
• The adjustment applies to all government sectors, not just core civil service roles.

This reform is expected to cost the government an additional 160 billion Birr, bringing the total annual salary expenditure to 560 billion Birr A.

🛡️ Government’s Rationale and Safeguards

Officials emphasized that the salary and allowance reforms are part of a broader strategy to:

• Improve living standards for public servants.
• Combat corruption by incentivizing ethical service.
• Boost morale and productivity in government offices.
• Protect against inflation: Regulatory bodies will monitor businesses to prevent unjustified price hikes linked to the salary increase B.

Dr. Mekuriya Haile, Civil Service Commissioner, urged employees to support the reforms and maintain professionalism. He also warned against exploiting the changes for profit, stating, “It is not appropriate to increase prices without reason because of salary adjustment” B.

🏛️ Future Outlook

The government plans to continue reforming the civil service system, including:

• Enhancing working conditions.
• Streamlining payment systems.
• Promoting respectful and efficient service delivery.

These changes reflect Ethiopia’s commitment to building a responsive and well-compensated public sector that can meet the country’s development goals.