Staff Reporter
GOVERNMENT through the Office of the Prime Minister has announced salary increments and better housing allowance benefits for civil servants, which are estimated to cost the government around N$1.7 billion.
It was announced that civil servants with job grades between 15 and 14 will get a flat increase of N$600, while staff members on Grades 13 to 1 will get a 5% increase on their basic salary.
This was announced by Dr. George Simataa, Secretary to the Cabinet, who held a meeting with the Namibia Public Workers Union (NAPWU) as well as the Namibia National Teachers Union (NANTU).
“We have agreed to improve the housing subsidy for civil servants. Civil servants earning up to N$60,000 per annum only qualified for loans of N$220,000. With this agreement, we have increased that amount to N$400,000. Civil servants earning between N$60,000 and N$90,000 previously qualified for a housing capital of N$297,000. This was increased to N$540,000,” Petrus T. Nevonga, General Secretary of NAPUW, said announcing some of the changes.
He added that staff members below the management cadre, with effect from 1st April 2023, will receive a 20% increase in the Housing Allowance. In addition to this, Nevonga announced a 20% increase in the Transport Allowance for staff members below the management cadre, with effect from 1st April 2023, and an 8% increase in the Motor Vehicle Allowance (capital and running costs) for staff members in the management cadre, with effect from 01 April 2023.
He added that the Parties acknowledge and agreed that the “kilometre rate” is a compensatory allowance and therefore shall not form part of the items for negotiation as per the demands/proposals by the recognized Trade Unions. Nevonga said that the Parties also agreed to undertake a comparative study on best practices for the provision of housing and medical aid for staff members.
Touching on the impact of the salary increments on governments around the massive wage bill, and government’s sentiments last year that it did not have money, Secretary to Cabinet, George Simataa, said that things have changed.
“The Namibia in 1990 on 21 March is not the same Namibia today. The position of government last year cannot be the same this year. Things change and improve. We have looked at all the cost benefits and problems we have in the country. We have the drought situation, we have people that are unemployed, and we have the health sector and all other conditions that affect other Namibians. All these factors have been taken into consideration by leadership. To ask the government did not have money a few years ago, I want to refer you to what I said earlier on. Things change,” Simataa said.
He added that N$1.7 billion will be catered for by the Ministry of Finance to give effect to the salary increments and other benefits. Simataa, however, conceded that these increments could have an impact on the wage bill, but added that the Prime Minister in 2018 issued directives on how the government can contain its wage bill.
“There were many measures spelled out, e.g., limiting the number of travel and overtime. Those measures are still in place. We have human beings with families to take care of, and as such, we had to balance the situation. We cannot sacrifice the public servants who are the machinery of the well-being of the people of this country. They provide health services and all other services. The 5% increment is below inflation. This below inflation lifestyle of the civil servants has been going on for a long time,” Simataa concluded.
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