Luanda - The Angolan government has said it will adopt a new civil service remuneration policy during the 2025 financial year to correct some existing distortions in the salary scale, the Minister of State for Economic Coordination, José de Lima Massano, announced Tuesday in Luanda.
Clarifying some of the questions posed by members of the National Assembly's special committees, as part of the debate on the 2025 State Budget, the minister spoke of the need to correct the current distortions in the very organization and structure of the government, such as comparable functions, but with a large deviation in their remuneration.
“While on the one hand some civil servants may receive a little more than the 25% provided for in the State Budget/2025 proposal, on the other hand, there are also those who may not receive the 25%,” the minister clarified.
Massano added that the restructuring exercise has already begun and that, in 2025, the 25% adjustment “may not benefit the basic salary of some civil servants to the extent of this percentage”, while others will be slightly above it.
This adjustment, the minister said, has also been negotiated with the trade unions and that, on average, basic pay will increase by 25 percent.
For José de Lima Massano, the wage adjustment planned for 2025 “won't put much pressure on prices”, since the reality continues to show the existence of inflationary pressures, regardless of wage levels.
In reality, the minister said, the government “doesn't have this fear, because the pay of civil service workers, over a number of years, has been somewhat repressed, in other words, wages have remained static, but prices haven't stopped rising, since there are other phenomena that contribute to the behavior of prices in the economy.
Among other actions, the draft State Budget /2025 plans to increase the consumption of domestic goods and services and establish the Legal Regime for Incentives to National Production, through the vehicle of public contracting entities.
The budget forecasts growth in the national economy of around 4.14% and a reduction in value added tax on production equipment from the current 14% to 5%, maintaining the payment period introduced in 2023 of up to 24 months.
It will include measures to support investment in food security through the restructuring and boosting of the cereals and grains sector, strengthening agricultural mechanization, fundamentally with regard to family agricultural production.
The 2025 State Budget estimates revenue and expenditure in the order of 34.6 trillion.
The proposal was prepared on the basis of an oil price of 70 dollars/barrel and an oil production of 1.98 million barrels of oil per day, forecasting lower inflation of around 16.6%, compared to the accumulated inflation rate of 23.4% expected by the end of 2024. ASS/QCB/AMP
