Seliverstov on public sector salaries: we’re moving in two directions – increasing salaries and raising allowances
The 2023 budget retains its social focus. More than Br900m can be allocated to increase sectoral allowances next year. In H1 2023, decisions are also expected regarding the increase of salaries for civil servants and military personnel. Belarus’ Finance Minister Yuri Seliverstov told journalists about this when commenting on the results of the President’s meeting on salaries and monetary allowances of state employees.
The Finance Minister recalled that initially in 2022 it was planned to allocate Br12.6bn for salaries to state employees, “This amount will be higher. A range of decisions was made [in the social sphere]. So, in the first half of the year, COVID allowances were in effect, but then they were transformed to a wider range of recipients. This alone required an increase in labour costs to Br0.5bn. Moreover, a decision was made ahead of time on the growth of salaries for educators of preschool institutions from September 1st; in general, sectoral allowances were raised in education. Decisions were also made regarding additional payments to the security bloc. All this, of course, required an increase in salary expenditures.”
Yuri Seliverstov also recalled the decision to allocate Br130.6m from the reserve fund of the President of Belarus to maintain the level of material security of certain categories of employees of budgetary organisations, “These funds were just supposed to provide the amount of resources to fulfil all the decisions.”
The 2023 budget retains its social orientation, with about 38 percent going to salaries and pensions (including pensions for military personnel).
“We are moving in two directions: the first is the growth of salaries, the second is the increase in sectoral allowances. This year, the volume of such allowances was estimated at Br600m while next year over Br900m is allocated. There is a government action plan until 2025, where the level of salaries that must be achieved in a particular area (as a percentage of wages in the economy) is fixed. State employees are tied to the economy, it is built in a differentiated way, and we are going along this path,” the Minister commented.
The meeting also touched upon such an important topic as salary level of state employees and civil servants, including military personnel. According to the Head of the Finance Ministry, certain decisions of the Government to increase salaries from January 1st were adopted, “Now it is necessary to make a decision on civil servants and military personnel. The President instructed the Government to further consider the wage system so that there are no distortions, so that those who really do important work in particularly busy areas do not feel underestimated in terms of salaries. Instructions were given to once again revise our wage system to see that there is a balance within the bodies.”
Yuri Seliverstov noted that for this a working group would be set up, which – together with the Government and the State Secretariat of the Security Council – should deal with existing issues and make appropriate proposals during H1 2023.
