NEW SALARY STRUCTURE: Good News for Government Employees as Finance Ministry Releases Shs1.6 Trillion to Pay Salaries

Uganda’s Ministry of Finance, Planning and Economic Development (MoFPED) has released funds for the first quarter of the 2022-23 Financial Year which began this month. 

Briefing reports on the status of the economy and First Quarter (Q1) expenditure releases for the 2022-23 Financial Year, Ramathan Ggoobi, the MoFPED Permanent Secretary and Secretary to the Treasury (PSST), claimed that as at the end of June 2022, the size of the country’s economy was projected at Shs162.1 trillion or 45.7 billion US dollars translating in a per capita of 1,046 US Dollars.

PSST Ggoobi attributed this ecnomic performance to “the prudent economic policies,” saying these had made it possible for the economy to grow at the rate of 4.6 per cent up from 3.5 per cent in the 2020/21 Financial Year.

He further noted that Government of Uganda had started on the process of getting households still stuck in subsistence into the money economy as well as supporting businesses and the overall economy to recover from the harsh effects of the Covid19 pandemic. 

He then announced the amount of funds that had been released by the Government of Uganda, through the Ministry of Finance, in the first Quarter of the current financial year. PSST Ggoobi noted that funds to the tune of Shs 4.676 trillion, excluding debt, had been released in Q1.

Of this release, Shs 1.603 trillion was will go to wages of government employees; Shs230 will pay pension and gratuity; Shs 662bn will clear arrears; Shs 721bn will go to security agencies; Shs 47.6bn will go the Judiciary; Shs 175bn will go to Parliament; while Shs 160bn has been sent to health institutions.

Up to Shs96bn has been released to facilitate the recurrent expenditure for Local Governments; Shs 98 billion has been sent to public universities while Shs 13bn has been released to finance agriculture institutions.

The PSST also announced that the Finance Ministry had not released funds meant for capital expenditure, revealing that government had resolved to prioritize this expenditure in the second quarter (Q2) of the current financial year.

The Shs 1.6 trillion meant for payment of salaries is expected to include the enhanced salaries of scientists, including science teachers who were promised an increment following their strike a number of weeks ago.

It should be remembered that the money for science teachers’ salaries was confirmed by the finance minister in the budget reading but the science teachers’ union recently claimed that there was a plot to divert their share, and warned government not to touch their money. (Read Stories Here and There).

READ MORE STORIES FROM OUR EXTENSIVE COVERAGE OF SALARY INCREMENT AND STRIKES OVER PAY ENHANCEMENT BELOW:

In order to improve service delivery and end the challenge of strikes over low pay, President Museveni’s government has proposed huge salary increments for teachers, doctors and other employees starting July 2022. (Read Story Here)

The proposed increments left many people wondering if government will really fulfill this pledge and increase salaries by very high amounts.

For example, opposition leader Dr Kizza Besigye has argued that the promise of salary increment is just ‘another lie.’ (Read Story Here).

Finance Minister Matia Kasaija said the money for increasing teachers’, doctors’ and other civil servants’ salaries was available. (Read Story Here).

In August 2021, cabinet approved salary increment for teachers, doctors and other health workers. (Read Story Here).

See the salary structure that had been proposed for the 2021-2022 financial year here.

UPDATED LIST: See Salary Structure for All Government Workers

Meanwhile, an NRM MP angered teachers after telling them they are too poor to go on strike. (Read Story Here).

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READ: Besigye Man Reveals Shocking Reason Why Museveni Reportedly Hates Arts Teachers & Doesn’t Want to Increase Their Salaries

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MORE ON SCIENCE TEACHERS’ SALARY INCREMENT

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