Ethiopia Overhauls Salary Scale for Project Staff Funded by Development Partners

EBR_News Mar 18, 2026

The Ministry of Finance has unveiled a comprehensive new directive aimed at overhauling the compensation system for temporary staff employed in development programs and projects funded by international partners. Directive Number 1125/2025, issued in March 2026, seeks to establish a uniform and transparent salary structure for workers across all federal and regional government offices, replacing the previous framework established in 2025.

The new regulation introduces standardized salary scales, detailed in four attached schedules, which apply to all project-funded personnel ranging from support staff to high-level specialists. By categorizing these temporary positions into four distinct groups Special Advisors, Sector-Specific Technical Professionals, Project Staff, and Support Staff the directive aims to eliminate pay discrepancies where similar roles across different projects might receive varying compensation.

The Ministry emphasized that these measures are designed to ensure fairness and consistency in how development funds are utilized for human resources.

Beyond salary standardization, the directive establishes strict protocols for recruitment and career advancement. It mandates a competitive hiring process based on minimum qualifications and introduces a performance-based system for annual salary increments.

Employees must achieve a performance review score of at least 70 percent to advance to the next pay step. The directive also clarifies the limited scope of additional benefits, stating that while employing offices must provide necessary work tools, other resources like vehicles must be justified within the project’s core budget.

The directive applies to all new hires, contract renewals, and salary adjustments for partner-funded projects, though it explicitly excludes short-term consultants and staff directly employed by the development partners themselves. Oversight responsibility falls to the Ministry of Finance in coordination with federal and regional audit bodies.

#EBR #Ethiopia #Ethiopian #EBRNews #EBR_News #EthiopianBuisnessReview #Policy #salary