Kuzeeko Tjitemisa
Windhoek
Government is still considering introducing voluntary early retirement packages for civil servants to help keep a lid on the State’s wage bill, Prime Minister Saara Kuugongelwa-Amadhila said last week.
President Hage Geingob revealed last week that government plans to reduce government’s bloated N$28.1 billion wage bill by enforcing retirement at the age of 60.
Addressing the last Cabinet meeting of the year, Geingob said government is under pressure due to its huge civil service wage bill, which takes up 40 percent of revenues the State receives annually.
Responding to questions by New Era, Kuugongelwa-Amadhila said the voluntary early retirement option was one of the long-term measures by government to help arrest the escalating wage bill.
Government is now investigating the feasibility of reducing the voluntary retirement age from 55 to 50 years. However, she said the mandatory retirement age for civil servants remains 60 years.
She said there was an approved action plan for the implementation of the wage bill reduction outlining measures to be taken to realise a decrease in the public sector wage bill.
She said the measures are categorised into short, medium and long-term options. The prime minister further said a working committee was established to coordinate the implementation of the agreed measures.
Kuugongelwa-Amadhila says a decision will only be taken on the matter when investigations have been concluded and stakeholders consulted. “Whether or not we decide to reduce the early retirement age will depend on the outcome of the investigations,” the PM said.
Other measures taken to contain the size of the wage bill include the fast-tracking of the implementation of the Human Capital Management System (HCMS) to improve human resource management and administration through accurate statistical data on all HR activities.
Further, the PM said the size of the public service was identified as one of the major cost drivers of the wage bill. Therefore, there is a focus on curtailing the creation of additional posts and the filling of existing vacancies.
In cases where there is a need to create a new post, Kuugongelwa-Amadhila said ministries and agencies have been directed to make compensatory reductions.
In all such cases, the PM added, each permanent secretary is required to make a formal application motivating a business case for any new post(s) and to fill any vacancy.
“No vacancy can be advertised before approval has been secured,” she said, adding that it was important to note that these activities have started during the current financial year and the real impact will only be assessed at the end of the financial year.
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Caption: (Prime Minister)