Civil Service Salaries will be Adjusted by 25% Starting this Month

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Civil Service Salaries will be Adjusted by 25% Starting this Month
Civil Service Salaries will be Adjusted by 25% Starting this Month

Africa-Press – Angola. Civil servants will benefit from a salary adjustment of up to 25 percent, starting this January. The adjustment is the result of an agreement between the Executive and the trade unions, which raises the national minimum wage to 70 thousand Kwanzas for workers in general and 50 thousand for micro-enterprises.

Speaking to Rádio Nacional, the national director of Labor, António Estote, assured that the Executive is working to implement the salary adjustment already approved.

“We have an additional budget of more than 800 billion kwanzas, which corresponds to 25% of the public sector salary,” added the official.

“At this moment, teams from the Ministries of Finance and Public Administration, Labor and Social Security are finalizing the final budget data. We will be in a position to make the increase,” he said.

With the entry into force of the new minimum wages, of 50,000 Kz (54.8 USD) for micro-enterprises and startups, Angola ranks 10th among the 16 countries of the Southern African Development Community (SADC) that have minimum wages in place, according to data from meusalario.org, which belongs to the international foundation Wageindicator. The list is led by the Seychelles, where the minimum wage established by law is 1,164 USD. Mauritius, with 327 USD, and South Africa, with almost 264 USD, close the podium of the highest minimum wages in SADC. If the salary for medium and large companies, of 70,000 Kz, is taken into account in this ranking, Angola ranks 8th.

Companies that are unable to update must justify

Some companies have spoken out, saying that they are unable to pay the new minimum wages. As reported by Expansão in September, even before the new wage came into effect, several companies in the retail, bakery, service and construction sectors asked not to pay the 70 thousand Kz. This is because companies that are unable to pay the new minimum wages that came into effect in September must request authorization from the Ministry of Public Administration, Labor and Social Security, and prove their financial inability, according to a document published in the Official Gazette in October.

The application process must be accompanied by the report and accounts for the last financial year, including the following documents: letter of request; updated company commercial certificate; forecast of payrolls for the following 12 months; declaration of no debt for IRT; declaration of no debt for Social Security contributions; salary map for the last financial year; model of the agreement between employer and employee; collective labor agreement duly registered and deposited with the ministry, in accordance with the Collective Bargaining Law.

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