By MBONGENI NDLELA
LOBAMBA – Minister of Finance Neal Rijkenberg has confirmed that government will allocate E10 billion towards the national wage bill, a significant portion of the 2025/26 budget.
This funding aims to ensure the sustainability of public service salaries, improve efficiency in wage administration, and address salary adjustments for civil servants.
Government’s Commitment to Wage Stability
During the budget speech, Rijkenberg emphasized government’s commitment to maintaining a balanced and sustainable wage bill.
He acknowledged that wage payments account for a substantial part of government expenditure, necessitating prudent financial management.
“Our priority is to ensure that salaries remain sustainable without compromising other critical government programs. The E10 billion allocation will cover salary adjustments, new recruitments, and ensure timely payment of wages,” Rijkenberg stated.
Breakdown of the E10 Billion Wage Bill
- Public Servants’ Salaries: E8.5 billion
- Allowances and Benefits: E900 million
- Salary Adjustments and Promotions: E400 million
- New Recruitments in Key Sectors: E200 million
The Minister noted that despite the financial pressures, government remains committed to fair compensation and providing incentives that retain skilled personnel within the civil service.
Balancing Fiscal Responsibility and Wage Growth
Rijkenberg pointed out that while the wage bill remains one of the largest expenses, it is essential to strike a balance between wage growth and overall fiscal responsibility. Government is also working on measures to improve payroll efficiency, such as:
- Digitizing payroll systems to reduce administrative costs.
- Conducting regular wage audits to prevent ghost employees.
- Implementing performance-based salary adjustments to enhance productivity.
Impact on Public Service and Economy
The Minister assured civil servants that wage payments would not be delayed, adding that ensuring fair compensation helps maintain service delivery standards. Moreover, a stable wage bill contributes to economic activity by injecting funds into local markets through employee spending.
“A well-managed wage bill supports economic growth, as public servants play a key role in service delivery and consumer spending,” he added.
Looking Ahead
Government is set to review its wage policies to ensure long-term sustainability. Rijkenberg highlighted that continued discussions with labor unions and relevant stakeholders would be crucial in maintaining a fair and transparent wage structure.
“We remain open to dialogue with our public servants to ensure that wage decisions align with economic realities and the country’s development agenda,” he concluded.
The E10 billion wage bill reflects government’s commitment to stability and efficiency while ensuring that civil servants receive fair compensation within a sustainable fiscal framework.
