Update Provided on Retroactive Salary Payments to Public Sector Employees

EDITOR
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Government, through the Treasury Department, has issued a comprehensive update regarding the ongoing disbursement of retroactive salary payments (back pay) to eligible public sector employees.

All outstanding retroactive payments to public servants and payments related to teacher upgrades will be completed by the end of April, placing this commitment at the forefront of its latest update.

These payments arise from negotiated agreements between the Government and various trade unions and bargaining agents, which resulted in salary increases and improved benefits for public officers. As the agreed increases were implemented after the contractual periods, retroactive payments are now being made to compensate eligible employees.

The retroactive payments cover the periods January 1, 2018 to December 31, 2020, and January 1, 2021 to December 31, 2023. However, as salary adjustments took effect in January 2024, back pay is applicable for the period January 1, 2019 through December 31, 2023.

Eligibility for retroactive payments applies to public sector employees, with the exception of Parliamentarians, Government Ministers, Judges, participants in the Work Experience Programme, and contract officers whose agreements do not provide for negotiated salary increases. Current employees must have been employed on or before December 31, 2023, while former employees who resigned or retired on or before December 31, 2025, may also qualify once the relevant conditions are satisfied.

The Treasury Department has advised that payments are being processed on an ongoing basis throughout April 2026, with the majority expected to be completed within the month. Several ministries and departments have already received their final payments as of April 2, 2026, while additional disbursements are scheduled, including a new batch to be issued by April 10, 2026.

All payments are being made via Electronic Funds Transfer (EFT), ensuring efficiency and direct deposit into employees’ bank accounts. No over-the-counter cheque payments will be issued.

Employees who previously received partial retroactive payments in 2022, 2024, and 2025 may still be eligible for a final disbursement if the total received does not equal the full amount owed. The Treasury Department also confirmed that no taxes will be deducted from retroactive payments.

Upon completion of the process, comprehensive statements detailing all disbursements will be provided to Permanent Secretaries for distribution, ensuring transparency and accountability across all ministries and departments.

The Treasury Department emphasized that this final phase of retroactive payments requires careful verification to ensure accuracy and fairness. Public sector employees are therefore asked for their patience and cooperation as the process is finalized.

Eligible individuals who have not received any retroactive payment and who left the public service prior to December 2022 are encouraged to submit their employment and banking details to the Treasury Help Desk at treasury.helpdesk@ab.gov.ag. (See attached document for further information)

BACKPAY-FREQUENTLY ASKED QUESTIONS-APRIL 2026

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