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Government has expressed concern over the growing challenge of over-indebtedness among public service employees, warning that it has significantly affected performance and productivity.
Acting Secretary to the Cabinet, Siazongo Siakalenge, has called on public sector unions to collaborate with government in promoting financial literacy among workers to help curb the problem.
Siakalenge made the remarks at Sandy’s Creations in Chilanga District on Tuesday during the official opening of the 2026 negotiations for salaries and conditions of service meeting.
He noted that a number of government ministries and institutions were struggling with personal emolument-related obligations, a situation contributing to the trend of indebtedness among employees.
“The New Dawn Government has placed priority designation on the settlement of all forms of debt. The Unions should engage with sector ministries to appreciate what has been achieved in reducing personal-related debt and agree on what can be done,” Siakalenge said.
He urged stakeholders to remain focused and open-minded during the negotiations and ensure that discussions were conducted in a harmonious and cordial manner.
Siakalenge reaffirmed government’s commitment to ensuring good employee welfare and continued industrial harmony, but cautioned that wage growth must remain sustainable.
“However, there is need for all key stakeholders to ensure that the growth of the wage bill remains within sustainable levels while improving the welfare of public service employees,” he emphasized.
He added that government’s fiscal policy for 2026 would continue to focus on restoring and maintaining fiscal sustainability while supporting economic growth, job creation, and improved living conditions.
Siakalenge stated that the ultimate goal was to progressively reduce the fiscal deficit and limit reliance on domestic and foreign borrowing to maintain macroeconomic stability.
“Further, government remains committed to economic transformation while taking resources and development closer to the people, as exhibited through the implementation of the devolution programme,” he said.
On the sidelines of the meeting, Basic Education Teachers Union of Zambia (BETUZ) Secretary General Henry Sinkala expressed optimism about the outcome of the negotiations, stating that the union expected a better deal than the K550 increment awarded this year.
While he declined to disclose the specific figure proposed, Sinkala said the union had submitted several demands to government based on members’ expectations.
“The expectations from our members are very high just like each year. They are very optimistic that something substantial — something better than what we got this year — will be given to them next year,” Sinkala said.
He added that the negotiations would take into account the high cost of living, inflation trends, and other economic variables likely to affect 2026.
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