Mbabane – The Government of Eswatini has successfully reduced the civil service wage bill by 10% over the past seven years, according to Minister of Finance, Neal Rijkenberg.
Speaking during a Finance in Focus discussion, Rijkenberg confirmed that the government’s expenditure on salaries dropped from 42% to 32% of total spending, marking significant progress in efforts to achieve fiscal stability.
The minister noted that while the ongoing civil service salary review is expected to push the wage bill back up to about 36%, it still remains below previous levels. He described the review as “necessary and well-executed,” adding that it addressed long-standing issues within the pay structure, including promotion irregularities and housing benefits.
Rijkenberg acknowledged that implementing the review placed strain on public finances, with Treasury officials working “overtime” to ensure timely payments. “This year’s budget will definitely be impacted,” he said, noting that the government is exploring cost-cutting measures to accommodate the new salary structure.
He cautioned that the coming year may present further challenges, as the wage bill is projected to climb to approximately E11 billion, raising total government expenditure to between E25 billion and E31 billion. Much of this, he said, will go toward salaries, limiting fiscal space for other projects.
Despite these pressures, Rijkenberg expressed confidence in the government’s ability to manage the transition responsibly. “We will have to tighten up again in the coming years to bring the wage bill closer to our long-term target of 25%,” he stated.
The minister emphasised the importance of continued economic growth and disciplined public spending as key to achieving long-term fiscal sustainability. He also urged civil servants to use their new salary adjustments wisely, especially in managing debt.
“Some civil servants are heavily indebted, leaving them with very little disposable income,” he warned. “With this salary increase, it’s an ideal time to reset our spending habits and manage debt wisely.”
Rijkenberg further advised that loan repayments should not exceed one-third of a worker’s income, allowing enough for living expenses and savings. “Let’s all use this opportunity to live within our means,” he added.
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