Comparative Analysis of Wage Bills & Inflation-Indexed - PowerPoint Presentation

1. Comparative Analysis of Wage Bills & Inflation-Indexed Adjustment of Public Sector Salaries and Wages in South Sudan1st National Economic Conference6th September 2023By Salaries and Wages Review Working Group. THE UNIVERSITY OF JUBAIn collaborationwith The Sudd Institute and Ebony Centre for Strategic Studies1

2. Outline1. General OverviewIntroductionWhy reviewing and adjusting public sector salaries and wages?What Principles determine the adjustment of salaries and wages?Objectives of the evidence-based study2. Methodology and Key Findings 3. Adjusting Public Sector Salaries and Wages Proposed framework for Wage Bill in South Sudan, FY 2021/22Conclusion and Recommendations 2

3. IntroductionThere is an increased concern about the spiraling inflation and skyrocketing prices of essential commodities in the markets for the last six yearsCost of living has dramatically increased while salaries remain staticEconomic hardship continues to negatively impact public sector employees including: civil servants, government ministers, members of legislative houses, judges, doctors, nurses, academics, teachers, members of the organized forces and law enforcement agencies. The growing discontent can potentially trigger social and political upheavals and insecurity across the country.3

4. Why reviewing and adjusting public sector salary and wages?South Sudan’s Labour Act (2017 Art 50) requires minimum wage/salary be determined based on employees’ basic needs: food, housing, cost of living and productivity level South Sudan Civil Service Act (2011 Art 59) allows for an annual increment to base salaries and wages, but no adjustments made since 2011 Since 2015 to date, market prices have increased, while SSP value has steeply deteriorated against the US Dollar. Item Price in 2011 SSPPrice in 2020 SSP% increase500 ml bottle of mineral water11009,900%. 1 litre of petrol63505,700% 10 loaves of bread55009,900%4

5. Why reviewing and adjusting public sector salary and wages...2Market Item Price in 2011 (SSP)Price in 2023 (SSP)Price increase factor(2023)A 500 ml bottle of mineral water1250300 timesA litre of fuel 61,200200 times10 loaves of bread51,500300 times5

6. Why reviewing and adjusting public sector salary and wages?...3Based on the foregoing, a Cabinet Minister paid a monthly salary of SSP 10,000 in 2011: Could afford to buy 10,000 bottles of mineral water (500 ml), In 2023 he/she can only afford to buy 40 bottles of mineral water with the same monthly salary. This Cabinet Minister would need to be paid at least SSP 2,500,000 in 2023 to be able to be able to buy 10,000 bottles of mineral water.6

7. Low-paid members of the organized forces and law enforcement agencies may be tempted to condone criminal and illicit activities e.g., illegal collection of taxes at transport check points Low-paid senior government officials supplement their incomes with bloated travel and sitting allowances, unnecessary travel and unregulated payment of allowances for medical treatment abroadMass exodus of academics in search of better payment. In 2018, 1 out of 4 academic staff from the University of Juba took a leave without payLoss of purchasing power – The professor’s gross monthly salary of SSP 25,000 (in 2015) dropped in value to less than USD 100 (by 2019). Why reviewing and adjusting public sector salaries & Wages …47

8. Does Adjustment in Public Sector Salaries Lead to Inflation?We hear that public wage adjustment would lead to the so-called wage-price spiral (i.e., "wage induced inflation”). This argument is not borne out of economic science Public wages increase does not by and of itself cause inflation. Often inflation is caused by other forces. For instance, the national government influences the levels of aggregate demand using monetary and fiscal policies. Consequently, if aggregate demand rises faster than aggregate supply, this will lead to inflation. 8

9. Low payment of salaries and wages to public sector employees:Constrains access to basic needs - food, accommodation, and clothingUndermines the rule of law and delivery of government services to citizens (national defense, dispensing of justice, fighting crime, and enforcement of contracts and property rights). Interferes with the efficient operation of the government machinery (poor response to public security and disaster management).Compels migration of qualified civil servants to the NGOs/private sectors 9

10. Principles Used in Determining and Adjusting Public sector salaries and wages In remuneration of civil servants, officials and employees, the Civil Service Act (2011, Art 43), requires within the fiscal constraints to support: 1) Efficient and effective service delivery; 2) Affordability and sustainability; 3) Appropriate incentives for all civil servants, officials and employees;4) Equal pay for work of equal value;5) Minimize monetary and in-kind allowances;6) Competitiveness and capacity to retain staff.10

11. Objectives of the study The overall objective of the study was to review the salaries and wages of public sector employees in line with the current cost of living.Specific objectives:Gather information on the current civil service procedures of salaries and wages payment, and concerns of employees on economic hardshipsIdentify suitable method for adjustment to inflation in line with the cost of livingPropose framework for adjustment of salaries and wages applicable to national, state and local governments to meet the cost of pension and health insurance and essential public goods such as general educationProvide recommendations at Policy and programming levels.11

12. Methodology and Key Findings12

13. Key Findings……Current pay structure of public sector wage bill does not cater for pension and national security or health insurance5% of pension contribution deducted is not deposited in any known and accessible accountThe government contribution of 11% for employee’s pensions is not followed as stipulated in Pension Fund Act 2012There is no provision for social security/public health insurance for medical coverage, accident or disability as it was in old Sudan National Social Security and Insurance Act 1997. Citizens pay for treatment out of their pocket.13

14. Key Findings……High wage bill yet low wages: Spending on public sector is high on aggregate but wages to public sector employees are low. High wage bill is caused by over employment of particular sectors e.g., organized forces and security sector which takes about 78% of public revenue in FY 2015/2016In FY 2023/24, the government is budgeting for 376,226 personnel in security sector that may not exist. In line with the provision in the R-ARCISS, we thus recommend 85,000 personnel in the security sector.Civil service with low capacity: civil service has large number of unclassified staff with limited level of education, and several senior civil servants are past retirement age. The 2019 headcount by the government shows only 9,457 staff are classified compared to 6,372 unclassified staffsLow motivation in the civil service: has increased discontentment, poor performance and attendance due to low salaries and wages and delayed payment.14

15. Trends in Public Sector Wage Bill in South SudanComparative analysis between South Sudan and Kenya15

16. Trends in Public Sector Wage Bill Cont’d…Comparative analysis of Wage Bill between South Sudan and Kenya16

17. Type of IncomeAmount ($ billion)Share of total (%)ExamplesLabour Income:Wages and Salaries6,35651.8Teachers wages Benefits and other Labour income1,45711.9Pension fund contributionsProperty Income:Proprieters' income1,0568.6Accountant's share of partnershipRental income400.3Land lords rent after expenses and depreciationCorporate profits1,64213.4Profits of AmazonNet interest6645.4Interest paid on savingsTaxes on production and other: 1,0568.6Total12,271100Income paid to factors of production17Division of US National Income (US Bureau of Economic Statistics, 2007)

18. Division of US National Income (US Bureau of Economic Statistics, 2007)18

19. Key Findings: Trends in CPI within the EAC RegionCountry2011201220132014201520162017201820192020Burundi 110 129 140 146 154 163 189 183 182 195 Kenya 114 125 132 141 150 160 172 181 190 200 Rwanda 103 114 120 123 126 135 147 146 151 166 Tanzania 113 131 141 150 158 166 175 181 187 194 Uganda 115 130 136 140 148 156 165 169 174 180 South Sudan 147 214 214 217 332 1,592 4,584 8,411 15,749 20,423 South Sudan has the highest inflation in the region.The low salary and wages has aggravated sufferings, demotivated civil servants, increased staff turnover rate in search of better opportunities.19

20. Key Findings: Size of organized forces in AfricaSouth Sudan has the largest number of organized forces in the continent and took most of the country’s budget before 2015.Country Members of organized forcesPopulation (million) apprSouth Sudan414,04413.2 Nigeria223,000206.1Ethiopia138,000115DRC134,25090Sudan124,30044Angola117,00033Uganda45,000 46Kenya29,100 54Tanzania28,000 60Central African Republic10,150 520

21. Size of organized forces Cont…/21

22. Key Findings…Current salaries and wages are neither competitive, motivating nor in line with the principle of sustainability. Beside ordinary civil servant, a salary of a minister cannot buy a meal for a day or sustain him/her to the next pay time . Continued insecurity and climate shocks hamper economic development and Agricultural production.Public sector employees’ allowances are high relative to base pay and not controlled. Most countries increase the base pay and maintain the total allowances at least below 40% of the base pay.22

23. GRSS Proposal FY 2021/2022DesignationCurrent Basic Salaries and WagesProposed BasicSalaries and WagesCOLA56.3% of basicRESP66% of BasicHouse Rent66% of GrossSitting40% of Basic House Subsidy127% of basicSocial40% GrossGross PayPension5%PIT10%Net PayPresident - CPH 15,000 70,650 39,776 46,629 178,729 28,260 89,726 108,321 562,091 28,105 56,209 477,777 Vice President - CPH 13,500 63,585 35,798 41,966 163,374 25,434 80,753 99,015 509,925 25,496 50,992 433,436 Minister - CPH 10,000 47,100 27,843 32,640 125,100 19,782 59,817 72,214 384,496 19,225 38,450 326,822 Hon. Speaker - NLA 13,500 63,585 35,798 41,966 163,374 25,434 80,753 99,015 509,925 25,496 50,992 433,436 Minority Leader - NLA 9,000 42,390 23,866 27,977 108,916 16,956 53,835 66,010 339,950 16,998 33,995 288,958 Member - NLA 7,000 32,970 18,562 21,760 84,712 13,188 41,872 51,341 264,405 13,220 26,440 224,744 Speaker - CS 13,500 63,585 35,798 41,966 163,374 25,434 80,753 99,015 509,925 25,496 50,992 433,436 Chip Whip - CS 9,000 42,390 23,866 27,977 108,916 16,956 53,835 66,010 339,950 16,998 33,995 288,958 Member - CS 7,000 32,970 18,562 21,760 84,712 13,188 41,872 51,341 264,405 13,220 26,440 224,744 Grade 1 - CS/SS 5,040 8,715           Grade 5 - CS/SS 3,510 7,185           Grade 17 - CS/SS 564 4,239           23

24. Key Concerns about GRSS 2021/22 ProposalThe GRSS proposal had very high allowances compared to the base pay (Allowances are 16 times the base pay)Conventionally, allowances should not exceed 40% of the base payThe GRSS proposal has PIT and Pension but does not budget for it The GRSS does not budget for the National Social Insurance Fund (Social Security) which is critically important.24

25. - Proposed Framework for Adjustment Public Sector Salaries and Wages and - Key Recommendations25

26. Proposed Framework for Adjustment Public Sector Salaries and WagesChoosing the measure of inflation for price/cost adjustmentThere are several measures of inflation - the GDP and CPI and the two commonly used measures: The consumer price index (CPI): Reflects changes in the cost of a fixed basket of goods and services that typical households normally consume. This is the standard approach for adjusting prices for inflation as shown below:The Gross Domestic Product (GDP) implicit price deflator: the GDP implicit price deflator reflects the price changes of all goods and services that contribute to a country’s gross domestic product (GDP), that is, all locally produced goods. It is the most general measure of the overall price level, and reflects the average annual rate of inflation in the economy during that period. 26

27. Proposed Framework for Adjustment Public Sector Salaries and WagesUsing the CPI to adjust costs/prices for inflationTo adjust costs for inflation using the CPI, we multiply the cost in question by the ratio of the CPI from the base year and CPI from the current year. Examples (using annual CPI): Using the CPI to adjust cost for inflation: For the case of South Sudan, the CPI in 2011 and 2021 was 147 and 20,423 respectively. Gives CPI ratio of This means general prices/costs have increased by about 139 times in 2020/21 from 2011 (base year). 27

28. Proposed Framework for Adjustment Public Sector Salaries and WagesExample:A public official whose base salary was set at SSP 2,960 (US $ 1,000 equivalent at the official of exchange rate of USD 1 = SSP 2.96) in 2011.Given that this salary has not been adjusted for inflation since 2011, the adjusted salary using the CPI would be SSP 411,000 in 2021. 28

29. Proposed Framework for Adjustment Public Sector Salaries and Wages…2Foreign Exchange Rate Inflation Adjustment. Much of the inflation in South Sudan is induced by foreign exchange rate. In 2011, the exchange rate was USD 1 = SSP 2.96 but in 2023, the exchange rate is USD 1 = SSP 1,100 – that is an Exchange Rate Pass-through Inflation Adjustment factor of 371. This means that the general market basket price became 371 times more expensive in 2023 over 2011 for all households in South Sudan and we attribute this to exchange rate-induced inflation.3. Consumer Price Index (CPI) Inflation Adjustment. The CPI in 2011 was 147 and in 2023 it is estimated at 44,609 – that is an inflation factor of 303. Similarly, this tell us that general market basket price became 303 times more expensive in 2023 over 2011 for all households in South Sudan and we attribute this inflation as revealed by the CPI. Please note that CPI data in South Sudan tend to be volatile and unreliable.29

30. Proposed Framework for Adjustment Public Sector Salaries and Wages…3Position/TitleMonthly Basic Salary(2011)Monthly Basic Salary(FY 2023/24 Budget)Inflation-adjusted Monthly Base Salary(2023)President15,000144,0005,565,000Member of Parliament7,000560,0002,597,000Minister10,00096,0003,71,000Vice Chancellor10,0001,88,7003,710,0001st Lt. General8,00078,8002,968,000Captain1,31334,320487,123Private32010,138118,720Grade 1 (Public Service)2,10050,784779,100Grade 5 (Public Service)1,40036,576519,400Grade 17 (Public Service)2086,56677,16830

31. Proposed Two Scenarios1. Scenario 1 - uses the relevant CPI to adjust salaries and wages. For sectors with no changes in salaries since 2011, w have used the 2011 and 2020 CPI.For sectors with revised salaries (e.g., General Public Service, Security Sector and Higher Education where salaries were revised in 2015/16, 2016/17), we have used the 2015 and 2020 CPI. No other changes were made. For this scenario, the annual public wage bill comes to about SSP 1 trillion or USD 2.1 billion.2. Scenario 2 - uses an annual public wage bill estimate of SSP 400 billions or USD 851 million based on the following assumptions.A. Security Sector Wage bill, capped at 32% of the total wage bill estimateB. States and Administrative wage bill capped at 60% of the total wage bill. States and AA are to generate the remaining 40%Note that the estimated total wage in Scenario 2 is close to the estimated wage bill per the GRSS new salary structure and estimates presented in the FY2021/22 budget.  But wages are much improved and better distributed.31

32.  Total Monthly Wage Bill (SSP) 2021/22Total MonthlyWage Bill (USD) 2021/22Total AnnualWage Bill (SSP) 2021/22Total AnnualWage Bill (USD) 2021/22As % of TotalNational/Central GovernmentGeneral Public Service5,190,997,79411,044,67662,291,973,533132,536,1146.2%Constitutional Postholders780,419,7921,660,4689,365,037,50519,925,6120.9%Foreign Affairs Headquarters105,236,645223,9081,262,839,7412,686,8930.1%Security Sector53,590,381,480114,022,088643,084,577,7561,368,265,05963.7%Foreign Service2,897,091,2386,164,02434,765,094,85773,968,2873.4%Higher Education1,659,586,0833,531,03419,915,032,99242,372,4112.0%Judiciary194,838,135414,5492,338,057,6174,974,5910.2%State/AA GovernmentsCentral Equatoria2,541,298,0325,407,01730,495,576,38964,884,2053.02%Eastern Equatoria1,501,081,8223,193,79118,012,981,86838,325,4931.79%Jonglei2,822,949,3826,006,27533,875,392,58772,075,3033.36%Lakes1,873,984,4973,987,20122,487,813,96647,846,4132.23%Northern Bahr El Ghazal1,648,936,5663,508,37619,787,238,78642,100,5081.96%Unity1,718,584,3753,656,56320,623,012,50243,878,7502.04%Upper Nile2,614,233,4995,562,19931,370,801,99466,746,3873.11%Warrap1,909,212,7874,062,15522,910,553,44448,745,8582.27%Western Bahr El Ghazal1,679,478,7733,573,35920,153,745,27642,880,3092.00%Western Equatoria1,315,318,6662,798,55015,783,823,99733,582,6041.56%Abyei AA16,030,20034,107192,362,396409,2820.02%Greater Pibor AA14,572,90931,006174,874,906372,0740.02%Ruweng AA17,487,49137,207209,849,887446,4890.02%GRAND TOTAL 84,091,720,167 178,918,554 1,009,100,641,998 2,147,022,643 100%Scenario 1 : SUMMARY OF PROPOSED PUBLIC SECTOR WAGE BILL IN SOUTH SUDAN, FY 2021/2232

33. Staff Grade/TitleMonthly Basic Salary (USD) 2011Monthly Basic Salary (SSP) 2016/17Proposed Monthly Basic Salary (SSP) 2021/22Proposed Monthly Allowances 20% of Basic Salary (SSP)2021/22Monthly Pension11% of Basic Salary (SSP) 2021/22Total Staff/Headcount 2021/22Total monthlyWage Bill (SSP) 2021/22Total MonthlyWage Bill (USD) 2021/22Total AnnualWage Bill (SSP) 2021/22Total AnnualPayroll Bill (USD) 2021/22Chairperson3,0419,000553,636110,72760,9001510,878,93823,147130,547,261277,760Chair3,0419,000553,636110,72760,9001725,2631,5438,703,15118,517Head of Authority3,0419,000553,636110,72760,90032,175,7884,62926,109,45255,552Head of Corporation3,0419,000553,636110,72760,9001725,2631,5438,703,15118,517Deputy Chairperson (NEC)2,1966,500399,84879,97043,983136,809,41014,48881,712,915173,857Special Leadership2,0276,000369,09073,81840,6007636,746,63678,184440,959,637938,212Executive Director2,7038,000492,12098,42454,13331,934,0334,11523,208,40249,380Deputy Chairperson (Other)2,3657,000430,60586,12147,3672413,538,23428,805162,458,813345,657Deputy Chairperson (HRC,A)2,3657,000430,60586,12147,367137,333,21015,60387,998,524187,231Commission Members8452,500153,78830,75816,917132,619,0045,57231,428,04466,868Advisor to Ministry2,7038,000492,12098,42454,1331610,314,84521,946123,778,144263,358Member2,0276,000369,09073,81840,6006129,494,01162,753353,928,129753,039Commission Members (PAR)1,6895,000307,57561,51533,8335823,369,57149,722280,434,857596,670Scenario 1: Proposed General Public Service 33

34. Cont…/ Scenario 1: Proposed General Public Service Staff Grade/TitleMonthly Basic Salary (USD) 2011Monthly Basic Salary (SSP) 2016/17Proposed Monthly Basic Salary (SSP) 2021/22Proposed Monthly Allowances 20% of Basic Salary (SSP)2021/22Monthly Pension11% of Basic Salary (SSP) 2021/22Total Staff/Headcount 2021/22Total monthlyWage Bill (SSP) 2021/22Total MonthlyWage Bill (USD) 2021/22Total AnnualWage Bill (SSP) 2021/22Total AnnualPayroll Bill (USD) 2021/2211,7875,290325,41565,08335,796394167,959,527357,3612,015,514,3254,288,32821,5254,515277,74055,54830,551857311,810,924663,4273,741,731,0857,961,13031,4444,275262,97752,59528,927440151,579,875322,5101,818,958,5013,870,12441,3323,944242,61548,52326,688990314,647,909669,4643,775,774,9108,033,56451,2873,810234,37246,87425,7811,350414,487,553881,8884,973,850,63810,582,66161,2083,575219,91643,98324,1914813,828,33929,422165,940,074353,06471,1853,508215,79543,15923,7372,380672,805,1251,431,5008,073,661,50117,178,00381,0653,153193,95738,79121,3353,362854,229,2321,817,50910,250,750,78721,810,10899962,948181,34636,26919,9483,170753,077,1851,602,2929,036,926,22319,227,503109212,725167,62933,52618,4392,315508,358,6891,081,6146,100,304,27112,979,371115621,663102,30020,46011,2532,614350,308,425745,3374,203,701,0958,944,045124351,28879,23115,8468,7151,764183,091,083389,5552,197,092,9944,674,666133721,10267,79013,5587,4572,696239,416,585509,3972,872,999,0196,112,764143571,05664,96012,9927,14685272,503,048154,262870,036,5711,851,1421528283451,30410,2615,6431,986133,474,421283,9881,601,693,0463,407,8581625675946,6909,3385,13666240,490,44286,150485,885,3011,033,7991723168442,0768,4154,6281628,929,43318,999107,153,192227,986Grand Total26,0425,190,997,79411,044,67662,291,973,533132,536,11434

35. Scenario 1: Constitutional PostholdersStaff Grade/TitleMonthly Basic Salary (USD) 2011Monthly Basic Salary (SSP) 2011Proposed Monthly Basic Salary (SSP) 2021/22Proposed Monthly Allowances 20% of Basic Salary (SSP)2021/22Monthly Pension11% of Basic Salary (SSP) 2021/22Total Staff/Headcount 2021/22Total monthlyWage Bill (SSP) 2021/22Total MonthlyWage Bill (USD) 2021/22Total AnnualWage Bill (SSP) 2021/22Total AnnualWage Bill (USD) 2021/22President5,06815,0002,083,980416,796229,23812,730,0135,80932,760,15969,702Vice-President4,56113,5001,875,582375,116206,314512,285,06026,138147,420,716313,661Presidential Advisors3,54710,5001,458,786291,757160,4661834,398,16773,188412,778,006878,251Auditor General3,37810,0001,389,320277,864152,82511,820,0093,87221,840,10646,468Chair of Anti-Corruption3,37810,0001,389,320277,864152,82511,820,0093,87221,840,10646,468Chair of Human Rights3,37810,0001,389,320277,864152,82511,820,0093,87221,840,10646,468Ministers3,37810,0001,389,320277,864152,8253054,600,265116,171655,203,1841,394,049Deputy Minister2,7038,0001,111,456222,291122,260811,648,05724,783139,776,679297,397Other Commission Chairs2,7038,0001,111,456222,291122,2602434,944,17074,349419,330,038892,192Secretary General2,7038,0001,111,456222,291122,26022,912,0146,19634,944,17074,349Speaker4,56113,5001,875,582375,116206,31424,914,02410,45558,968,287125,464Deputy Speaker3,54710,5001,458,786291,757160,46635,733,02812,19868,796,334146,375Chief whip3,0419,0001,250,388250,078137,54346,552,03213,94078,624,382167,286Committee Chairperson3,0419,0001,250,388250,078137,5434065,520,318139,405786,243,8201,672,859Clerk2,7038,0001,111,456222,291122,260913,104,06427,881157,248,764334,572Committee Deputy Chairperson2,7038,0001,111,456222,291122,2603246,592,22699,132559,106,7171,189,589Assembly Member2,3657,000972,524194,505106,978376479,026,3281,019,2055,748,315,93112,230,459Grand Total557780,419,7921,660,4689,365,037,50519,925,61235

36. Scenario 1: Security Sector Staff Grade/TitleMonthly Basic Salary (USD) 2011Monthly Basic Salary (SSP) 2016/17Proposed Monthly Basic Salary (SSP) 2021/22Proposed Monthly Allowances 20% of Basic Salary (SSP)2021/22Monthly Pension11% of Basic Salary (SSP) 2021/22Total Staff/Headcount 2021/22Total monthlyWage Bill (SSP) 2021/22Total MonthlyWage Bill (USD) 2021/22Total AnnualWage Bill (SSP) 2021/22Total AnnualPayroll Bill (USD) 2021/221st Lt. General2,7038,000492,12098,42454,1332012,893,55727,433154,722,680329,197Lt. General2,0276,000369,09073,81840,60010550,768,379108,018609,220,5511,296,214Major General1,7875,290325,41565,08335,796642273,680,245582,2983,284,162,9366,987,581Brigadier1,5254,515277,74055,54830,5511,849672,740,2541,431,3628,072,883,05317,176,347Colonel1,4444,275262,97752,59528,9272,529871,239,7821,853,70210,454,877,38522,244,420Lt. Colonel1,3323,944242,61548,52326,6883,9861,266,855,1172,695,43615,202,261,40432,345,237Major1,2873,810234,37246,87425,7815,6831,744,839,0853,712,42420,938,069,02044,549,083Captain1,2083,575219,91643,98324,19112,6253,637,141,3747,738,59943,645,696,49092,863,1841st Lieutenant1,1853,508215,79543,15923,73711,5793,273,281,7416,964,42939,279,380,89283,573,1512nd Lieutenant1,0653,153193,95738,79121,33512,5643,192,306,9826,792,14338,307,683,78481,505,710RS/Major9962,948181,34636,26919,94811,3752,702,288,0075,749,54932,427,456,08568,994,587S/Major9212,725167,62933,52618,43919,2494,226,953,0938,993,51750,723,437,114107,922,207Sergeant5621,663102,30020,46011,25348,0186,435,007,62413,691,50677,220,091,491164,298,067Corporal4351,28879,23115,8468,71549,7255,161,113,43110,981,09261,933,361,174131,773,109L/Corporal3721,10267,79013,5587,45740,0283,554,661,3737,563,10942,655,936,47690,757,312Private3571,05664,96012,9927,146194,06716,514,611,43535,137,471198,175,337,224421,649,654Grand Total414,04453,590,381,480114,022,088643,084,577,7561,368,265,05936

37. Scenario 1: Higher Education Staff Grade/TitleMonthly Basic Salary (USD) 2011Monthly Basic Salary (SSP) 2015/16Proposed Monthly Basic Salary (SSP) 2021/22Proposed Monthly Allowances 20% of Basic Salary (SSP)2021/22Monthly Pension11% of Basic Salary (SSP) 2021/22Total Staff/Headcount 2021/22Total monthlyWage Bill (SSP) 2021/22Total MonthlyWage Bill (USD) 2021/22Total AnnualWage Bill (SSP) 2021/22Total AnnualPayroll Bill (USD) 2021/22Vice Chancellor8,44625,0001,537,877307,575169,166510,073,09121,432120,877,093257,185Deputy Vice Chancellor7,77023,0001,414,846282,969155,6331018,534,48839,435222,413,852473,221Professor4,05412,000738,181147,63681,2006158,988,022125,506707,856,2591,506,077Associate Professor3,37810,000615,151123,03067,667130104,760,148222,8941,257,121,7712,674,727Assistant Professor2,3657,000430,60586,12147,367248139,895,089297,6491,678,741,0733,571,790Lecturer2,1966,500399,84879,97043,983566296,471,218630,7903,557,654,6127,569,478Teaching Assistant1,1823,500215,30343,06123,683701197,714,632420,6692,372,575,5895,048,033Chief Technician2,0276,000369,09073,81840,6003315,955,77633,948191,469,316407,382Senior Technician1,6895,000307,57561,51533,8333915,714,02233,434188,568,266401,209Technician1,3514,000246,06049,21227,0678427,076,46957,610324,917,627691,314Assistant Technician1,1823,500215,30343,06123,6834813,538,23428,805162,458,813345,657Lab Assistant8452,500153,78830,75816,917102,014,6184,28624,175,41951,437Lab Attendant6762,000123,03024,60613,533142,256,3724,80127,076,46957,610Registrar2,7038,000492,12098,42454,133106,446,77813,71777,361,340164,59913,0419,000553,636110,72760,9004230,461,02864,811365,532,330777,72822,7038,000492,12098,42454,1339058,021,005123,449696,252,0581,481,38732,0276,000369,09073,81840,6009646,416,80498,759557,001,6461,185,11051,6895,000307,57561,51533,83321787,434,431186,0311,049,213,1702,232,36871,3514,000246,06049,21227,06724879,940,051170,085959,280,6132,041,02381,1823,500215,30343,06123,683439123,818,436263,4431,485,821,2323,161,32291,0143,000184,54536,90920,30013833,362,07870,983400,344,933851,798108452,500153,78830,75816,91736874,137,951157,740889,655,4071,892,884116762,000123,03024,60613,53336458,665,683124,821703,988,1921,497,847125071,50092,27318,45510,15018221,999,63146,808263,995,572561,693134731,40086,12117,2249,47349055,281,124117,619663,373,4881,411,433144391,30079,97015,9948,797757,857,01116,71794,284,133200,605154051,20073,81814,7648,12038537,230,14579,213446,761,737950,557163381,00061,51512,3036,76729523,772,49550,580285,269,940606,9571730490055,36411,0736,09016211,749,25324,998140,991,042299,981Grand Total5,5501,659,586,0833,531,03419,915,032,99242,372,41137

38. Scenario 2: SUMMARY OF PROPOSED PUBLIC SECTOR WAGE BILL IN SOUTH SUDAN, FY 2021/22 Total Monthly Wage Bill (SSP) 2021/22Total MonthlyWage Bill (USD) 2021/22Total AnnualWage Bill (SSP) 2021/22Total AnnualWage Bill (USD) 2021/22As % of TotalNational/Central GovernmentGeneral Public Service5,190,997,79411,044,67662,291,973,533132,536,11415.6%Constitutional Postholders780,419,7921,660,4689,365,037,50519,925,6122.3%Foreign Affairs Headquarters105,236,645223,9081,262,839,7412,686,8930.3%Security Sector53,590,381,480114,022,088128,415,146,957273,223,71732.1%Foreign Service2,897,091,2386,164,02434,765,094,85773,968,2878.7%Higher Education1,659,586,0833,531,03419,915,032,99242,372,4115.0%Judiciary194,838,135414,5492,338,057,6174,974,5910.6%State/AA GovernmentsCentral Equatoria2,541,298,0325,407,01718,297,345,83438,930,5234.57%Eastern Equatoria1,501,081,8223,193,79110,807,789,12122,995,2962.70%Jonglei2,822,949,3826,006,27520,325,235,55243,245,1825.08%Lakes1,873,984,4973,987,20113,492,688,37928,707,8483.37%Northern Bahr El Ghazal1,648,936,5663,508,37611,872,343,27225,260,3052.97%Unity1,718,584,3753,656,56312,373,807,50126,327,2503.09%Upper Nile2,614,233,4995,562,19918,822,481,19640,047,8324.71%Warrap1,909,212,7874,062,15513,746,332,06629,247,5153.44%Western Bahr El Ghazal1,679,478,7733,573,35912,092,247,16525,728,1853.02%Western Equatoria1,315,318,6662,798,5509,470,294,39820,149,5632.37%Abyei AA16,030,20034,107115,417,438245,5690.03%Greater Pibor AA14,572,90931,006104,924,943223,2450.03%Ruweng AA17,487,49137,207125,909,932267,8930.03%GRAND TOTAL 84,091,720,167 178,918,554 400,000,000,000 851,063,830 100%38

39. Scenario 2: General Public Sector Staff Grade/TitleMonthly Basic Salary (USD) 2011Monthly Basic Salary (SSP) 2016/17Proposed Monthly Basic Salary (SSP) 2021/22Proposed Monthly Allowances 20% of Basic Salary (SSP)2021/22Monthly Pension11% of Basic Salary (SSP) 2021/22Total Staff/Headcount 2021/22Total monthlyWage Bill (SSP) 2021/22Total MonthlyWage Bill (USD) 2021/22Total AnnualWage Bill (SSP) 2021/22Total AnnualPayroll Bill (USD) 2021/22Chairperson3,0419,000553,636110,72760,9001510,878,93823,147130,547,261277,760Chair3,0419,000553,636110,72760,9001725,2631,5438,703,15118,517Head of Authority3,0419,000553,636110,72760,90032,175,7884,62926,109,45255,552Head of Corporation3,0419,000553,636110,72760,9001725,2631,5438,703,15118,517Deputy Chairperson (NEC)2,1966,500399,84879,97043,983136,809,41014,48881,712,915173,857Special Leadership2,0276,000369,09073,81840,6007636,746,63678,184440,959,637938,212Executive Director2,7038,000492,12098,42454,13331,934,0334,11523,208,40249,380Deputy Chairperson (Other)2,3657,000430,60586,12147,3672413,538,23428,805162,458,813345,657Deputy Chairperson (HRC,A)2,3657,000430,60586,12147,367137,333,21015,60387,998,524187,231Commission Members8452,500153,78830,75816,917132,619,0045,57231,428,04466,868Advisor to Ministry2,7038,000492,12098,42454,1331610,314,84521,946123,778,144263,358Member2,0276,000369,09073,81840,6006129,494,01162,753353,928,129753,039Commission Members (PAR)1,6895,000307,57561,51533,8335823,369,57149,722280,434,857596,67039

40. Cont…/Scenario 2: General Public Service Staff Grade/TitleMonthly Basic Salary (USD) 2011Monthly Basic Salary (SSP) 2016/17Proposed Monthly Basic Salary (SSP) 2021/22Proposed Monthly Allowances 20% of Basic Salary (SSP)2021/22Monthly Pension11% of Basic Salary (SSP) 2021/22Total Staff/Headcount 2021/22Total monthlyWage Bill (SSP) 2021/22Total MonthlyWage Bill (USD) 2021/22Total AnnualWage Bill (SSP) 2021/22Total AnnualPayroll Bill (USD) 2021/2211,7875,290325,41565,08335,796394167,959,527357,3612,015,514,3254,288,32821,5254,515277,74055,54830,551857311,810,924663,4273,741,731,0857,961,13031,4444,275262,97752,59528,927440151,579,875322,5101,818,958,5013,870,12441,3323,944242,61548,52326,688990314,647,909669,4643,775,774,9108,033,56451,2873,810234,37246,87425,7811,350414,487,553881,8884,973,850,63810,582,66161,2083,575219,91643,98324,1914813,828,33929,422165,940,074353,06471,1853,508215,79543,15923,7372,380672,805,1251,431,5008,073,661,50117,178,00381,0653,153193,95738,79121,3353,362854,229,2321,817,50910,250,750,78721,810,10899962,948181,34636,26919,9483,170753,077,1851,602,2929,036,926,22319,227,503109212,725167,62933,52618,4392,315508,358,6891,081,6146,100,304,27112,979,371115621,663102,30020,46011,2532,614350,308,425745,3374,203,701,0958,944,045124351,28879,23115,8468,7151,764183,091,083389,5552,197,092,9944,674,666133721,10267,79013,5587,4572,696239,416,585509,3972,872,999,0196,112,764143571,05664,96012,9927,14685272,503,048154,262870,036,5711,851,1421528283451,30410,2615,6431,986133,474,421283,9881,601,693,0463,407,8581625675946,6909,3385,13666240,490,44286,150485,885,3011,033,7991723168442,0768,4154,6281628,929,43318,999107,153,192227,986Grand Total26,0425,190,997,79411,044,67662,291,973,533132,536,11440

41. Scenario 2: Constitutional PostholdersStaff Grade/TitleMonthly Basic Salary (USD) 2011Monthly Basic Salary (SSP) 2011Proposed Monthly Basic Salary (SSP) 2021/22Proposed Monthly Allowances 20% of Basic Salary (SSP)2021/22Monthly Pension11% of Basic Salary (SSP) 2021/22Total Staff/Headcount 2021/22Total monthlyWage Bill (SSP) 2021/22Total MonthlyWage Bill (USD) 2021/22Total AnnualWage Bill (SSP) 2021/22Total AnnualWage Bill (USD) 2021/22President5,06815,0002,083,980416,796229,23812,730,0135,80932,760,15969,702Vice-President4,56113,5001,875,582375,116206,314512,285,06026,138147,420,716313,661Presidential Advisors3,54710,5001,458,786291,757160,4661834,398,16773,188412,778,006878,251Auditor General3,37810,0001,389,320277,864152,82511,820,0093,87221,840,10646,468Chair of Anti-Corruption3,37810,0001,389,320277,864152,82511,820,0093,87221,840,10646,468Chair of Human Rights3,37810,0001,389,320277,864152,82511,820,0093,87221,840,10646,468Ministers3,37810,0001,389,320277,864152,8253054,600,265116,171655,203,1841,394,049Deputy Minister2,7038,0001,111,456222,291122,260811,648,05724,783139,776,679297,397Other Commission Chairs2,7038,0001,111,456222,291122,2602434,944,17074,349419,330,038892,192Secretary General2,7038,0001,111,456222,291122,26022,912,0146,19634,944,17074,349Speaker4,56113,5001,875,582375,116206,31424,914,02410,45558,968,287125,464Deputy Speaker3,54710,5001,458,786291,757160,46635,733,02812,19868,796,334146,375Chief whip3,0419,0001,250,388250,078137,54346,552,03213,94078,624,382167,286Committee Chairperson3,0419,0001,250,388250,078137,5434065,520,318139,405786,243,8201,672,859Clerk2,7038,0001,111,456222,291122,260913,104,06427,881157,248,764334,572Committee Deputy Chairperson2,7038,0001,111,456222,291122,2603246,592,22699,132559,106,7171,189,589Assembly Member2,3657,000972,524194,505106,978376479,026,3281,019,2055,748,315,93112,230,459Grand Total557780,419,7921,660,4689,365,037,50519,925,61241

42. Scenario 2: Security Sector Staff Grade/TitleMonthly Basic Salary (USD) 2011Monthly Basic Salary (SSP) 2016/17Proposed Monthly Basic Salary (SSP) 2021/22Proposed Monthly Allowances 20% of Basic Salary (SSP)2021/22Monthly Pension11% of Basic Salary (SSP) 2021/22Total Staff/Headcount 2021/22Total monthlyWage Bill (SSP) 2021/22Total MonthlyWage Bill (USD) 2021/22Total AnnualWage Bill (SSP) 2021/22Total AnnualPayroll Bill (USD) 2021/221st Lt. General2,7038,000492,12098,42454,1332012,893,55727,433154,722,680329,197Lt. General2,0276,000369,09073,81840,60010550,768,379108,018609,220,5511,296,214Major General1,7875,290325,41565,08335,796642273,680,245582,2983,284,162,9366,987,581Brigadier1,5254,515277,74055,54830,5511,849672,740,2541,431,3628,072,883,05317,176,347Colonel1,4444,275262,97752,59528,9272,529871,239,7821,853,70210,454,877,38522,244,420Lt. Colonel1,3323,944242,61548,52326,6883,9861,266,855,1172,695,43615,202,261,40432,345,237Major1,2873,810234,37246,87425,7815,6831,744,839,0853,712,42420,938,069,02044,549,083Captain1,2083,575219,91643,98324,19112,6253,637,141,3747,738,59943,645,696,49092,863,1841st Lieutenant1,1853,508215,79543,15923,73711,5793,273,281,7416,964,42939,279,380,89283,573,1512nd Lieutenant1,0653,153193,95738,79121,33512,5643,192,306,9826,792,14338,307,683,78481,505,710RS/Major9962,948181,34636,26919,94811,3752,702,288,0075,749,54932,427,456,08568,994,587S/Major9212,725167,62933,52618,43919,2494,226,953,0938,993,51750,723,437,114107,922,207Sergeant5621,663102,30020,46011,25348,0186,435,007,62413,691,50677,220,091,491164,298,067Corporal4351,28879,23115,8468,71549,7255,161,113,43110,981,09261,933,361,174131,773,109L/Corporal3721,10267,79013,5587,45740,0283,554,661,3737,563,10942,655,936,47690,757,312Private3571,05664,96012,9927,146194,06716,514,611,43535,137,471198,175,337,224421,649,654Grand Total414,04453,590,381,480114,022,088  42

43. Scenario 2: Higher Education Staff Grade/TitleMonthly Basic Salary (USD) 2011Monthly Basic Salary (SSP) 2015/16Proposed Monthly Basic Salary (SSP) 2021/22Proposed Monthly Allowances 20% of Basic Salary (SSP)2021/22Monthly Pension11% of Basic Salary (SSP) 2021/22Total Staff/Headcount 2021/22Total monthlyWage Bill (SSP) 2021/22Total MonthlyWage Bill (USD) 2021/22Total AnnualWage Bill (SSP) 2021/22Total AnnualPayroll Bill (USD) 2021/22Vice Chancellor8,44625,0001,537,877307,575169,166510,073,09121,432120,877,093257,185Deputy Vice Chancellor7,77023,0001,414,846282,969155,6331018,534,48839,435222,413,852473,221Professor4,05412,000738,181147,63681,2006158,988,022125,506707,856,2591,506,077Associate Professor3,37810,000615,151123,03067,667130104,760,148222,8941,257,121,7712,674,727Assistant Professor2,3657,000430,60586,12147,367248139,895,089297,6491,678,741,0733,571,790Lecturer2,1966,500399,84879,97043,983566296,471,218630,7903,557,654,6127,569,478Teaching Assistant1,1823,500215,30343,06123,683701197,714,632420,6692,372,575,5895,048,033Chief Technician2,0276,000369,09073,81840,6003315,955,77633,948191,469,316407,382Senior Technician1,6895,000307,57561,51533,8333915,714,02233,434188,568,266401,209Technician1,3514,000246,06049,21227,0678427,076,46957,610324,917,627691,314Assistant Technician1,1823,500215,30343,06123,6834813,538,23428,805162,458,813345,657Lab Assistant8452,500153,78830,75816,917102,014,6184,28624,175,41951,437Lab Attendant6762,000123,03024,60613,533142,256,3724,80127,076,46957,610Registrar2,7038,000492,12098,42454,133106,446,77813,71777,361,340164,59913,0419,000553,636110,72760,9004230,461,02864,811365,532,330777,72822,7038,000492,12098,42454,1339058,021,005123,449696,252,0581,481,38732,0276,000369,09073,81840,6009646,416,80498,759557,001,6461,185,11051,6895,000307,57561,51533,83321787,434,431186,0311,049,213,1702,232,36871,3514,000246,06049,21227,06724879,940,051170,085959,280,6132,041,02381,1823,500215,30343,06123,683439123,818,436263,4431,485,821,2323,161,32291,0143,000184,54536,90920,30013833,362,07870,983400,344,933851,798108452,500153,78830,75816,91736874,137,951157,740889,655,4071,892,884116762,000123,03024,60613,53336458,665,683124,821703,988,1921,497,847125071,50092,27318,45510,15018221,999,63146,808263,995,572561,693134731,40086,12117,2249,47349055,281,124117,619663,373,4881,411,433144391,30079,97015,9948,797757,857,01116,71794,284,133200,605154051,20073,81814,7648,12038537,230,14579,213446,761,737950,557163381,00061,51512,3036,76729523,772,49550,580285,269,940606,9571730490055,36411,0736,09016211,749,25324,998140,991,042299,981Grand Total5,5501,659,586,0833,531,03419,915,032,99242,372,41143

44. Conclusions and RecommendationsOverall analysis shows that the current wages and salaries are not tenable. This poses serious threats to the national security and development. Whereas adjustment of salaries and wages to inflation using CPI seems to provide a quick solution, it is vital to carry out a range of fiscal, monetary, civil service and revenue collection reforms for smooth implementation of new policy. Based on that, we recommend the following:Improve revenue collection:The government should double up efforts to reform the revenue collection institutions and strengthen safeguards against corruptionThe government should open up new areas for oil exploration and production and improve technologies in existing oil fields to enhance production to improve and increase oil revenueIdentify new areas of tax collections and improve taxation mechanismsClose the loopholes in revenue collection and strengthen revenue collection strategies to increase the pie.44

45. Create a robust enforcement mechanism of the already existing laws or their amendment to better structure the wage bill: Conduct a nationwide head count exercise in all the states to get the status quo in relation to the budget allocated for salaries. This should be followed by strictly removing ghost names, unproductive employees and redundancy positions. Institute electronic payment of salaries to weed out ghost names as it is currently happening in some institutions. Reform the civil service: Reduce a large number of unclassified and unqualified staff those who have attained the retirement age and employ young and energetic staff. Retirement will save money to increase the salaries for the right and qualified number of staff.Introduce competitive and merit-based recruitment of civil servants: protect civil service from politicization and undue interference by politicians (for example a government minister dismiss and under secretary of a director in order to have his or her way).Recommendations Cont…/45

46. Create enabling environment to improve economic opportunities and productivity by: Implement the peace agreement (R-ARCSS) and reduce communal conflictsDevelop and implement climate resilience measures to withstand shocks against natural disasters such as floods which have crippled economic activities in large parts of the country.Enforce the rule of law and accountability and transparency institutions in South SudanInvest in agriculture and food security and empower youth and women to diversify the economy and engage in small to medium scale manufacturing industries to supplement salary paid by the government.Invest in education, capacity building, and technical vocation training and skillsRecommendations Cont…/46

47. Reduce high spending on the security sector and size of the organized forces: From 63% of proposed wage bill to 32% of the national budget to support other sectorsSocial Security and Pension Reforms: Enforce National Social Security Funds and pensions contributions and accrual and provide public health insurance for all citizens to cover cost of medical treatment Create an independent Salary Commission: This will be tasked with the reviewing the salary and wages periodically and advise on the increment based on appraisal measures. Strict measures must be put in place to discipline or terminate staff who underperform their duties. Adjust wages and salaries annually based on the CPI as stipulated in the lawRecommendations Cont…/47

48. THANK YOU48