Tigray Interim Administration Says 20 Billion Birr Needed to Clear Salary Arrears


KEYIR NEWS - The Interim Administration of Tigray has announced that it requires at least 20 billion birr to settle unpaid salaries owed to government employees, highlighting one of the most pressing post-war financial and governance challenges in the region.

The administration admitted that it cannot pay all arrears at once but has decided to allocate at least 5 percent of its annual budget in the new fiscal year to begin addressing the outstanding payments.

Government employees in Tigray, including teachers, health workers, and civil servants, have long demanded that they be compensated for the 17 months of salaries they lost during the conflict. 
Despite repeated appeals, the issue remains unresolved, fueling discontent among public sector workers who continue to face economic hardship.

The Tigray Teachers’ Association (TTA) has been at the forefront of legal action, taking the case to court and securing a ruling that instructed the federal government to cover 12 months of unpaid salaries, while requiring the regional administration to pay the remaining 5 months.

However, the Tigray Government recently issued a regulation prohibiting courts from considering salary and benefit claims, effectively blocking the enforcement of the ruling. The TTA has vowed to continue its legal and advocacy efforts to overturn this law and push for full implementation of the court’s decision.

During the Tigray Education Conference, which opened yesterday in Mekelle, teachers reiterated their demand for a “firm and lasting solution” to the salary crisis. 

Many attendees expressed frustration, saying that their patience is running out and that delayed salaries have severely affected not only their livelihoods but also the quality of education across the region.

“Teachers have carried the burden of the war and the reconstruction period with little support. What we are asking for is not a privilege but our rightful salary,” one participant told the conference.


Analysts note that the issue of salary arrears in Tigray is deeply entangled with Ethiopia’s broader political and economic challenges. The federal government faces a severe fiscal crunch, with rising inflation, foreign exchange shortages, and competing post-war reconstruction demands across multiple regions.

“The call for 20 billion birr is not just a financial matter; it is a test of political will and trust-building in post-war governance,” said an Addis Ababa–based economist. 

“Failure to resolve salary arrears risks undermining public confidence in the peace process and weakening state institutions in Tigray.”

The interim administration, for its part, argues that it has limited fiscal space and must balance salary obligations with urgent needs such as rebuilding schools, hospitals, and public infrastructure destroyed during the war.

The controversy over salary arrears underscores the difficulties facing Ethiopia’s reconstruction agenda in the wake of the Tigray conflict. While significant progress has been made in restoring services, unresolved financial disputes risk fueling frustration and further straining relations between federal and regional authorities.

As the court battle continues and pressure mounts from teachers and civil servants, the coming fiscal year will be a critical test of whether the interim administration can deliver on its promises and restore confidence in public service.