Parliamentarians, civil servants, and judiciary can expect another pay increase after the announcement of a salary restructure as part of the $1.15 billion budget for 2024-2025 that was tabled in the House on Tuesday.

The Minister of Finance, Lautimuia Uelese Vaai revealed the budget strategy in his address guided by the theme “Sustaining Growth Pathways for the Social, Economic and Climate Resilience of our Common Wealth”. 

There are five focused areas for the budget strategy that include the hosting of the Commonwealth Heads of Government Meeting (CHOGM), the $1 million development grant a ‘people-centered priority’, Cost of Living Adjustment and human development, enhancement of public service efficiency and implementing key development projects. 

According to the Minister of Finance, the final phase of the Cost-of-Living Adjustment (C.O.L.A.) is set to be done in FY2024/25 with the goal of enhancing the purchasing power of public servants. 

In this phase, he said salaries for all Principal Officers and below will be increased by three per cent. 

Those earning above the Principal Officer level up to below the CEO level will see a two per cent increase, while CEOs will receive a one per cent increase only.

“Simultaneously, the Remuneration Tribunal has undertaken a comprehensive review and restructuring of the salary scales for the executive, parliament, and judiciary,” said the Minister. “They have recommended revised remunerations aimed at ensuring fair compensation and proper structuring of the salary scale. 

“In addition, the Parliamentary Pension Scheme will be increased based on the June 2020 Actuarial Review of the Parliamentary Pension scheme. 

“These adjustments will also contribute to boosting purchasing power and are scheduled to take effect on 1^st July 2024.”
The budget address did not make specific on how much more the parliamentarians and Judges will get but it is certain that the officials will be getting a boost in their paycheck comes 1^st July. 

Cabinet Ministers are getting paid close to $140,000 not including allowances of around $12,000. 

Other ordinary parliamentarians are getting paid around $90,000 per annum not including other allowances received from parliament committee sittings. 

CHOGM has been allocated another $20 million said the Minister of Finance which will go towards catering, accommodation, accreditation, receptions, security, health, and other supporting services for the meeting. 

It’s the third year into the $1 million district grant and the Government sees significant progress in disbursing the allocated funds. 

“This fund has supported a wide range of initiatives including educational sponsorships, agricultural development, and health improvement,” Lautimuia stressed.  

On human capital development, the Government has committed to upskilling public servants by offering scholarship opportunities for undergraduates. 

The overseas medical scheme gets an increase to $6 million for the medical support. 

The deteriorating condition of the Moto’otua hospital has got the attention of the leaders with $1 million allocated for its maintenance work. 

Another major infrastructure development in the pipeline is the new Courthouse for Savaii and an initial $5 million has been allocated to start the construction of the $17 million project. 

Additionally, another key development project is the US$111.2 million Alaoa Multipurpose Dam Project which will commence in the upcoming fiscal year, significantly benefitting the energy, water and environment sectors.

Lautimuia said the construction of the Lano and Afega bridges is also expected to commence in the next financial year under the Samoa Climate Resilience Transport Project.

The budget aggregates show receipts of $1.02 billion, and expenditure is estimated at $1.15 billion. 

Lautimuia said the main estimate anticipates a cash deficit of approximately $153.6 million which is equivalent to 2.1 percent of GDP under the Government Finance Statistics format. 

For the fiscal year 2024/2025, he said the Government is not introducing nor increasing any taxes, but rather the focus is on improving tax compliance given the high level of forecasted economic activity. 

Total receipts are anticipated to increase by 7%, driven by an 18% increase in External Grants equivalent to $30.4 million tala in nominal terms, and a 4% increase in Ordinary Receipts equivalent to $33.3 million tala in nominal terms.  

Starting 1 July 2024, the Government will introduce a new cost recovery measure associated with the Australia and New Zealand labour mobility schemes, contributing to non-tax revenue aggregates.

“The aggregated total expenditures for the fiscal year 2024/2025 are estimated at $1.16 billion," Lautimuia told the House. 

“This figure includes development programs funded by our development partners, reflecting a 4.0% increase over the current year's estimates.” 

In terms of Government Ministries allocation, the Ministry of Health got the highest budget of $156 million. The Ministry of Education and Culture received second highest allocation of $135 million. (read budget address for other Ministries allocation)