According to the Ministry of Finance, personnel costs increased by a yearly 6% to $3.27B by August 2016. In details, this rise in personnel costs can be attributed to the 7% year-on-year incline in payments for salaries, wages and related benefits, the 4% increase in retirement salaries, and respective rises of 2% and 3% in end of service indemnities and transfers to public institutions to cover salaries, respectively.
Personnel costs accounted for 67% of the current primary expenditure, compared to 66% in Jan-August 2015 and 56% in Jan- August 2014. As such, this escalation can be justified by the smaller base of current primary expenditures, which dropped by 5% from 2014 to 2016, and the 12% increase in total salaries and wages between 2014 and 2016.
Breakdown of Salaries, Wages and Related Benefits by August (in $M)
|Government Contribution to Employees Cooperative||123||107||-13.44%|
Source: Ministry of Finance