Finance and Development Planning Minister Augustine Kpehe Ngafuan has reaffirmed the government’s commitment to enforcing the US$150 minimum wage across all central government employees, clarifying persistent public confusion surrounding salary figures and deductions.
Speaking during a recent engagement at the Ministry of Finance, Minister Ngafuan emphasized that no employee on the central government’s wage bill currently earns less than the legally mandated minimum wage of US$150.
“When we came in, there were people — not a huge number — but there were still people making less than US$150,” Ngafuan stated. “I can pronounce to you again that we fulfilled that pledge, and no one on the central government wage bill is making less than 150 United States dollars as a minimum wage.”
The assurance comes amid growing public skepticism, fueled by reports and social media claims that some civil servants are receiving monthly salaries as low as US$40 or US$70. Addressing this, Minister Ngafuan explained that such figures often reflect net pay, not gross salary, and fail to account for legally mandated taxes, social security contributions, insurance deductions, and loan repayments.
“When we say the wage, it is the gross,” the Finance Minister clarified. “Even in the U.S., people don’t expect that they’ll take home their full hourly wage — taxes and deductions apply. Liberia is no different.”
Public Misunderstanding Sparks Need for Financial Literacy
Minister Ngafuan called for increased budget and financial literacy among citizens to improve public understanding of payroll structures, particularly the difference between gross and net salary.
He noted that in some cases, employees also opt for personal deductions — including bank loan repayments — that may significantly reduce their take-home pay.
“The basis of knowing is to accept that you don’t know so that people will give you information,” he said, emphasizing the Ministry’s readiness to clarify and educate on fiscal matters.
Dollar-Liberian Dollar Split in Salary Payment
Additionally, Ngafuan, who is the nation’s chief economist, explained that civil servants are currently paid in a 70/30 currency split, with 70% paid in U.S. dollars and 30% in Liberian dollars, based on declarations made by the employees themselves.
This payment structure, he noted, further contributes to confusion over actual take-home figures when viewed in only one currency.
Context: Bread and Butter Issues
The Minister’s remarks are part of a broader push by the Boakai administration to address what many Liberians refer to as “bread and butter” issues — wages, inflation, and livelihoods. Ensuring compliance with the Decent Work Act’s minimum wage provisions is seen as a cornerstone of that agenda.
While enforcement in the private sector falls under the jurisdiction of the Ministry of Labor, Ngafuan stressed that the central government has set a precedent by ensuring full compliance within its institutions. courtesy of the Liberian Post
