![Minister of Public Service Mabulala Maseko. [Courtesy pic]](https://www.eswatiniobserver.com/wp-content/uploads/2026/07/Mabulala.jpg "Mabulala")
GOVERNMENT has spent E773.6 million more on the wage bill in the past six months.
This is 14.1% more on the wage bill before government’s 15% pension contribution.
According to the ministry of public service second-quarter performance report tabled by Minister Mabulala Maseko in Parliament on Wednesday, on overall performance, the wage bill for April to September amounted to E6.271 billion against a projection of E5.498 billion.
The minister said under the once-off July payments, the overrun was concentrated in July at E938.2 million above projection, reflecting back-pay and allowances under Phase 2 of the salary review.
He said when excluding July, underspends were E164.6 million, which was 3.6% below projection.
Under salary review costs, the minister stated that the back-pay of E569.3 million came in E66.0 million below projection, but the allowance budget could not sustain the improved and new allowances, leaving a net financing gap of E146.3 million to March, 2027.
He said the full-year outlook indicated that if October to March, 2027 outturns are in line with the projections, the FY2026/27 wage bill would be about E11.794 billion.
He said this would be E773.6 million, which is 7% above the annual projection of E11.021 billion.
Maseko said their headcount in September was 45 351, which was 723 officers higher than the year earlier, mainly due to Defence and Central Statistical Office recruitment. He added that basic salaries rose by 20.9% year-on-year to E4.482 billion. This was largely the full-year effect of Phase 1. Maseko said the Phase 2 step-up was not yet visible in monthly basic salaries.
“Government continues to monitor and manage its personnel expenditure to ensure fiscal sustainability while maintaining an efficient public service. The wage bill represents one of the largest components of recurrent expenditure, and managing it requires strict adherence to Medium-Term Fiscal Framework (MTFF) targets, especially during periods of structural pay adjustments,” he said.
He added that Phase 1 of the salary review was implemented in FY2025/26 with an injection of E1.2 billion, representing a 15.7% increase on the previous fiscal year’s wage bill.
He said in the 2025/26 financial year, the wage bill closed at E9.899 billion against a projection of E9.950 billion. He said there was a saving of E50.9 million, which was 0.5% before pension.
“A further E1.2 billion was earmarked for Phase 2 in FY2026/27, scheduled for implementation from July 2026. The total wage ceiling for FY2026/27 shifts to E12.425 billion,” he said.
Maseko said their key observations for the last quarter of FY2026/27 show a projected wage bill of E2.665 billion against an actual of E2.615 billion in basic salaries and allowances, before government’s 15% pension contribution.
| Expenditure Indicator | Budgeted Projection | Actual Outturn | Variance / Notes |
|---|---|---|---|
| H1 Total Wage Bill (Apr–Sep) | E5.498 billion | E6.271 billion | +E773.6 million (+14.1% overrun before 15% pension) |
| July Outturn (Once-off Impact) | Baseline projection | Spike concentrated in July | +E938.2 million above projection (Phase 2 back-pay & allowances) |
| H1 Performance Excluding July | 5-Month Baseline | Below projection | -E164.6 million underspend (-3.6%) |
| Phase 2 Back-Pay | E635.3 million (inferred) | E569.3 million | -E66.0 million below initial projection |
| Allowances Financing Gap | — | Deficit to March 2027 | Net financing gap of E146.3 million due to new/improved allowances |
| Full-Year FY2026/27 Forecast | E11.021 billion | E11.794 billion (projected) | +E773.6 million (+7% variance against annual baseline) |
Source: Ministry of Public Service Q2 Performance Report tabled in Parliament by Minister Mabulala Maseko.
