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)
2015 | 2016 | % change | |
Military Personnel | 1266 | 1313 | 3.72% |
Education Personel | 397 | 500 | 25.71% |
Civilian Personnel | 202 | 202 | -0.33% |
Government Contribution to Employees Cooperative | 123 | 107 | -13.44% |
Customs Salaries | 16 | 16 | 0.00% |
Total | 2004 | 2137 | 6.62% |
Source: Ministry of Finance