Public Wage Raise: the boom, and the catch for entrepreneurs

Following the public servants' wage raise, a good sum will be injected into the economy. It’s as big as 8.3% of the budget approved for 2025/2026 (2018 Local Calendar). In essence, this is going to affect about 2.5 million public employees, some of whose salaries are getting pulled up by an astouning 81.5%. Even if a substantial percentage of it trails back to the government through pensions and taxes, employee wallets are getting a good boost. Of the ETB 160 billion, roughly 92.48 billion will make it to the individuals' wallets. On average, they are now 3082 birr richer a month. 

ETB 3032 a month translated