The government has been formally requested to release recommendations for salary adjustments that apply to employees in the private sector by the Confederation of Ethiopian Trade Unions (CETU). This request comes after the government recently announced pay raises for employees in the public sector, a move that was made in line with the introduction of fresh macroeconomic reforms.
A pay adjustment for public officials was recently proposed by Prime Minister Abiy Ahmed; the government anticipates that this will cost more than 90 billion birr. The lowest-paid workers, who presently make 1,500 birr, will get a 300% raise as a result of this modification.
The CETU’s Deputy President, Ayalew Ahmed, told the media that although public sector employers have approved pay increases, private sector organizations are still waiting for government directives to carry out matching pay hikes. Ayalew highlighted that these modifications ought to be dependent on the financial capacity of specific businesses.
He also voiced concern about the growing financial strain that workers are experiencing as a result of the rising cost of living. According to a recent International Labor Organization (ILO) research, Ethiopia’s median monthly income is 3,000 birr, or roughly $51.96, and low salaries are a factor in lack of satisfaction.
According to the study, low pay was the main reason why nearly half (48%) of Ethiopian employees at foreign-owned clothing companies quit their jobs. In order to solve this issue, the union head pushed for fair remuneration methods and urged the government to work with businesses in the private sector. Ayalew stressed the need for a strong legislative framework to protect workers’ rights, which includes establishing a national minimum wage. In 2019, the parliament approved a revised labor proclamation that included the establishment of a body tasked with setting and reviewing the minimum wage. The Council of Ministers received draft regulations that outlined the authority and duties of the board. But according to CETU, not much has changed since then.