Ministry of Finance and Economic Planning Clarification about Reductions in Housing and Job Specific Allowances

Ministry of Finance & Economic Planning

Juba, October 24, 2012 (SSNA) — This is to inform the public in general and the civil servants in particular all over the Republic of South Sudan that the Ministry of Finance and Economic Planning has not directed any cut in the basic salaries of government employees whether at the State or National level. Any State authority that cuts the salaries/wages of its workers is not implementing the policy of the National Government. It has nothing to do with the austerity measures undertaken by the National Ministry of Finance and Economic Planning. Of course States have competence to determine their salary and staffing levels.

The following are some facts about State and National Government employee salaries during the current period of austerity:

• The National Government policy is to reduce housing allowances by 50%. At the State civil servants do not receive housing allowances; hence even if a State opts to follow National Government policy there could not be any reduction since there is no housing allowance to deduct.
• Conditional salary transfers to the States were not reduced except for the elimination of job specific allowances.
• Block grants to States were reduced by 25%.  This was significantly less than the reduction in the National Government budget of 35%.
• States are free to use their block grants in the way they want.