Government wage index increases in Q2
The indices measure the level of prices that government employees charge in exchange for the labour they provide.
25 September 2020 | Economics
The government wage index stood at 133.0 basis points during the second quarter of 2020, an increase of 0.9 percent, compared to an increase of 1.0 percent recorded in the corresponding quarter of 2019.
This slight increase in the index is reflected in the number of employees for public administration, defence and education, according to the Namibia Statistics Agency’s (NSA) 2020 second-quarter Government Wage Index (GWI) report.
The GWI is used to reduce the public sector in the national accounts as it reflects how government employees value their labour efforts in terms of compensation.
It is also essential for evaluating the wage bill, living standards and condition of work, the NSA pointed out.
The public administration and defence sectors recorded an increase of 1.2 percent during the second quarter of 2020, unchanged from the corresponding quarter of 2019.
Similarly, education increased by 1.2 percent during the second quarter of 2020 compared to 0.9 percent in the second quarter of 2019, NSA says.
Health, on the other hand, recorded a contraction of 2.7 percent during the second quarter of 2020 compared to a contraction of 0.1 percent in the corresponding quarter of 2019, the NSA added.
During the second quarter of 2020, the indices for public administration and defence, education, and health stood at 137.4, 128.2 and 123.9 basis points respectively, compared to 135.7, 126.8 and 127.4 basis points recorded in the same quarter of 2019, NSA pointed out.
The target population for the Government Wage Index (GWI) includes central government employees for the public administration and defence, education and health sectors only.
Statutory bodies are excluded from the scope of employees. Statutory bodies are state-owned enterprises that receive budgetary support from the central government to sustainable run their operations.
The data used to compile the wage index is sourced from payroll data received from the ministry of finance.
The weighted wage index is derived as a sum of the average wage and workers with correspondence between job grades within the respective government sectors. The wage index base year is 2015. [email protected]