Wages and Salaries
The 2020 budget for Compensation of Employees is comprised of:
|Employer’s NIS Contribution||$13.6 m|
|TOTAL||$ 345.9 m|
The 2021 budget for Wages and Salaries is 4.6 percent higher than the amount estimated for the Wage Bill in 2020. The main reasons for this are increases in increments and provision for the filling of a number of vacancies in areas essential for the proper functioning of the public service.
In 2021, the amount provided to pay pensions to retired civil servants and Government’s counterpart contribution to the NIS for civil servants currently employed is $ 72.6 million. This amount is comprised of:
Pensions $60.0 m
NIS Contribution $13.6 m = $73.6 m
Pension continues to be one of the single more significant items of the recurrent expenditure in 2021. Budgetary provisions for pension have grown by over fifty (50) percent in the last ten years, this growth in a non-contributary pension scheme is fraught with significant fiscal risk and the government intends to pursue pension reform to make the system sustainable. Therefore pension reform will remain high on the government’s agenda in budget year 2021.
Transfer payments to local, regional, and international organizations, and individuals are estimated at $127.4 million in 2021. This figure represents an increase of 2.5 percent when compared to the approved 2020 budget. A summary of the expenditure items that make up this heading are as follows:
|Grants and Contributions||$90.9 m|
|Social Assistances||$ 20.2 m|
This item of spending covers the payment of public assistance to the needy and vulnerable, scholarships and other financial support for tertiary education and grants and contributions to local, regional and international organizations.