Tuesday, April 23, 2024
NewsBanks bump up salaries, bonuses

Banks bump up salaries, bonuses

Commercial banks are raising employee salaries and bonuses ahead of the new fiscal year, even as public servants struggle with stagnant pay amid soaring costs of living.

The management of several banks informed their employees of the move through an internal memo. At least five banks confirmed to The Reporter that they have notified employees of the pay raises.

 Nib International Bank’s board approved the salary increment and bonuses “in recognition of employees’ contributions to the banks effectiveness and to motivate them,” a memo from Nib CEO Genene Ruga shows.

A two-step salary increment as well as two months’ pay bonus is provided on the basis of their performances, reads the memo.

The Cooperative Bank of Oromia (COOP) recently announced plans to increase employee salaries in order to help cover rising costs of living, according to an internal memo reviewed by The Reporter.

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At a board of directors meeting earlier this month, the bank approved implementing a two-tiered salary increment. The decision was made to adjust salaries to better align with surging inflation and the higher cost of consumer goods.

Abyssinia Bank’s board also approved a one-step salary increase and two months’ bonus for all its employees.

A Lion Bank employee, who talked to The Reporter on conditions of anonymity says his banks salary raise will likely be smaller than at other banks.

“Staff below management get 500 to 700 birr as transport allowance, while management gets a fuel allowance,” the staff said, noting he would prefer other benefits such as a housing allowance of 1,500 birr per month along with the 700 transport allowance instead of the small raise.

Experts say banks have little choice but increase pay for staff to cope with the cost of living. “Workers may find the step increase small due to higher taxes,” the expert said. “Senior staff may want it to improve pensions.”

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