September 19, 2025 (GCDC) -The Federal Civil Service Commission has announced salary increment for civil servants, effective September 2025. Under the revised pay scale, the entry-level salary for bachelor’s degree holders will increase from 6,940 (US$ 49. 34) birr to 11,500 birr (US$ 82) per month.
In statement commission said the increment is part of the government’s ongoing effort to ease the burden of rising living costs “within the country’s financial capacity.” It noted that civil servants have continued to deliver essential services despite economic pressures, a factor that prompted the latest revision.
The new scheme also raises the minimum salary for government employees from 4,760($35) birr to 6,000($44) birr, while the maximum salary will nearly double, rising from 21,492($158) birr to 39,000($286) birr. Salaries in sectors outside the civil service will also be revised, the commission added.
According to official figures, the increment will require an additional 160 billion birr, raising the government’s total annual salary expenditure to 560 billion birrs.
This comes a year after the government introduced a previous salary increment in response to cost-of-living spikes following reforms to Ethiopia’s foreign currency management system in August 2024.
The 2024 wage revision in which the government raised salaries for lower-paid civil servants by as much as 300%, part of a broader package of macroeconomic reforms designed to cushion workers from rising living costs.
According to the Civil Service Commission, the new measure will add 160 billion birrs to the state payroll, pushing annual salary expenditure to 560 billion birrs.
The announcement comes as Ethiopia continues to grapple with nearly 20% inflation and a budget deficit projected at 2.5% of GDP for the current fiscal year.
The revision also coincides with the implementation of the 2025 income tax reform, which raised the tax-free threshold for employment income to 2,000 birr per month, up from 600 birr.