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Sun Mar 29 2026

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Ethiopia Issues New Salary Directive for Development Project Staff

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The Ethiopian Ministry of Finance has officially issued a new directive, No. 1125/2018, establishing a standardized salary payment system for temporary staff employed in government projects supported by development partners. This directive, which became effective in December 2025 (Tahsas 2018 E.C.), replaces the previous regulation, No. 1046/2017, aiming to bring transparency, fairness, and consistency to project-based employment across federal and regional government offices.

The new policy seeks to eliminate discrepancies in job titles and salary scales for similar roles, ensuring that positions are clearly defined by educational requirements, experience, and job level. By aligning with current market conditions, the government intends to create a more structured and efficient working environment for project personnel.

Under the new guidelines, the salary structure is divided into four main categories: Special Advisors, Sector-Specific Technical Experts, Project Staff, and Support Staff. The directive mandates that government offices must verify that project tasks cannot be performed by regular civil servants before initiating new hires and must ensure that salary budgets are explicitly included in project plans.

The salary scale spans 22 levels, with a minimum starting salary set at 6,125 ETB. While new employees typically start at the base salary, the directive allows for negotiation up to the maximum level based on specialized skills, market demand, and available budget. Annual salary increments are strictly performance-based, requiring a minimum evaluation score of 70 percent.

Notably, the directive imposes strict limitations on additional benefits, prohibiting any payments not explicitly outlined in the document. However, it permits the provision of essential work materials, transportation, and other operational resources from project budgets. The implementation of this directive will be overseen by the Ministry of Finance, internal audit units, and the Office of the Federal Auditor General.

Certain groups remain exempt from this directive, including fixed-price consultants, staff in offices with special salary arrangements approved by the Prime Minister’s Office, and personnel hired directly by development partners.

Source: Telegram / tikvahethiopia