ESWATINI RANKED THIRD IN SADC IN TERMS OF WAGE BILL

ESWATINI RANKED THIRD IN SADC IN TERMS OF WAGE BILL

MBABANE– The kingdom of Eswatini has the highest wage bill in SADC region only better than Lesotho
and Namibia. The Central Bank of Eswatini has learnt that the high wage bill reflects rising salaries and not productivity over the past few years. From 2014/15, total expenditure grew from E15 billion to E22 billion in 2018/19 financial year. Of this total, spending on wages and salaries grew from E4.7 billion to E6.7 billion respectively. CBE General Manager Skhumbuzo Dlamini said as a percent of the total expenditure, earnings stood at 31% in 2014/15 financial year and at the current financial year is standing at 31.1 5. However, he said clear increase was realized in 2016/17 when government implemented a salary review. Dlamini said the impacts of that were
notably spilling over to 2017/18 as requests to the salary review were implemented. “In 2018/19 government is implementing economic procedure consolidation measures to arrest escalating cost of wages and salaries. This included cleaning up of the public service wage bill; removing of ghost employees, freezing vacant position
and limiting new employment to only replacement to retired and resigned positions,” he said. The CBE said growing wage bill does not relate to productivity gains therefore may not solve future unemployment. There is a need to link the country’s public wage dynamics to productivity trends to potentially boost long term growth.
Dlamini said the government needs to implement short and medium terms to reduce wage bill and that include maintaining salary increases, introduce temporal hiring freeze. Some of the medium term include aligning job requirement with compensation, strengthen human resources management and comprehensive organizational and functional reviews.

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