Ethiopia Launches Salary Reform to Bridge Civil Service Income Gap

• Ethiopia implements salary reform to narrow the income gap among civil servants
• The reform prioritises the lowest-paid workers with increases of up to 332%, while higher earners receive minimal adjustments

Addis Ababa, Ethiopia – Ethiopia has begun implementing a major salary reform intended to narrow the income disparity among civil servants, backed by 91.4 billion birr ($798m) in financing effective September 12, 2024. The reform offers the largest increases to the lowest-paid employees, who could see their wages rise by as much as 332%, while higher-income earners will receive only a 5% increment. This initiative is part of the country’s broader macro-economic reforms aimed at supporting low-income earners and boosting consumer spending.