According to the Ministry of Finance, personnel costs increased by a yearly 4% to $2.41B by June 2016. In details, this rise in personnel costs can be attributed to the 4% year-on-year incline in payments for salaries, wages and related benefits, the 4% increase in retirement salaries, and an 18% rise in end of service indemnities. Moreover, transfers to public institutions to cover salaries steadied at $127M.
Personnel costs’ contribution to the current primary expenditure stood at 68% in Jan- June 2016, compared to 54% in Jan-June 2014 and 65% in Jan- June 2015. As such, this escalation can be justified by the smaller base of current primary expenditures and the employment of new military personnel.
Breakdown of Salaries, Wages and Related Benefits by June (in $M)
| ||2014||2015||2016||% change (2015-16)|
|Government Contribution to Employees Cooperative||62||62||78|| 25.23%|
|Total Salaries, Wages and Related Benefits||1,394||1,511||1,573||4.08%|
|Total Personnel Costs||2008||2303||2407||4.49%|
Source: Ministry of Finance