Angolan Government Unveils New Civil Service Pay Policy.

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Luanda: The Angolan government has announced plans to implement a new civil service remuneration policy in the 2025 financial year aimed at addressing current salary scale distortions. This announcement was made by José de Lima Massano, the Minister of State for Economic Coordination, during a session in Luanda on Tuesday.

According to Angola Press News Agency, the minister addressed inquiries from members of the National Assembly’s special committees amid discussions on the 2025 State Budget. He highlighted the necessity to rectify existing disparities within the government structure, where comparable roles experience significant differences in pay. The minister explained that while some civil servants might receive more than the proposed 25% increase in the 2025 State Budget, others might not receive the full 25%.

Massano noted that the restructuring process is already underway. In 2025, the 25% adjustment might not fully apply to the basic salaries of some civil servants, while others could receive sligh
tly more. The adjustment has been negotiated with trade unions, with an average basic pay increase of 25% expected.

The minister emphasized that the planned wage adjustment for 2025 is not expected to exert substantial pressure on prices, despite ongoing inflationary pressures. He mentioned that civil service wages have remained static over the years, even as prices continued to rise due to other economic factors.

The 2025 State Budget includes initiatives to boost domestic goods and services consumption and establish incentives for national production through public contracting entities. It projects a 4.14% growth in the national economy, a reduction in value-added tax on production equipment from 14% to 5%, and supports investment in food security by enhancing the cereals and grains sector and agricultural mechanization.

The budget estimates revenue and expenditure at 34.6 trillion, based on an oil price of $70 per barrel and an oil production of 1.98 million barrels per day. It anticipates lower inflati
on of around 16.6%, compared to the projected 23.4% by the end of 2024.