Liberia’s Wage Bill Hits $355 Million as “Other Compensation” Adds Hidden $25 Million to Payroll

IN PHOTO: Wage increase graph for Liberia since 2010, portrait of Finance Minister Ngafuan, and screenshots from the 2026 Draft budget

Liberia’s government wage bill is projected to reach $329.2 million USD for fiscal year 2026, according to the official Draft National Budget published by the Unity Party administration. However, a controversial category — “Other Compensation,” coded as 222123 in budget documents — is set to add a further $25.7 million across every ministry and agency, pushing the true compensation bill for government personnel to at least $355 million.

The use of this sub-object code has drawn scrutiny from civil society watchdogs and opposition figures. They contend it functions as a shadow payroll, channeling unjustifiable expenses and enabling partisan hires to swell staff ranks without transparency or real salary increases for career civil servants.

The official wage bill, under Economic Classification Code 211101 (“Basic Salary - Civil Service”), increased from $306 million under the CDC government to $315 million under Unity Party last year. Now, it rises again to $329 million for 2026. When “Other Compensation” payouts are included, total cash flowing to government employees approaches $355 million — a record amount.

Despite this surge, meaningful pay raises for the more than 70,000 Liberians on the government payroll remain elusive, with any increase primarily benefiting government elites. Analysts say the structure and distribution of “Other Compensation” allow new hires, consultancies, and unjustifiable expenditures to be masked as discretionary personnel costs.

Recurrent Spending Approaches $930 Million

The payroll jump is part of a wider trend: Liberia’s total recurrent expenditure — covering salaries, operations, and all running costs — is projected at $929.6 million for 2026, a sharp increase from prior years. This leaves little room for investments in critical development, infrastructure, and public services.

Budget analysis reveals the country’s development budget lags far behind recurrent costs, stalling progress from roads to schools and healthcare. Experts blame a lack of innovation and reform. “When the government channels ever-larger sums into salaries and hidden payrolls, it’s the nation’s future that suffers,” one economist told Insights Liberia. “At 70,000 staff and nearly $360 million in total compensation, Liberia’s public sector is bloated yet stagnant.”

The “Other Compensation” controversy centers on code 222123, present in budget lines for all ministries and agencies, with totals detailed in Annex 5 and the main expenditure tables of the official document. Once overlooked, this code is a key consideration in this transparency debates — especially since its use grew to $25.7 million in 2026, up from $21 million in 2025.

As the National Legislature reviews the budget, there should be focus on “Other Compensation” and a rallying cry for greater transparency, more effective recurrent spending, and reforms that prioritize national investment over hidden and less transparent expenditures. With recurrent costs nearing $1 billion, the country stands at a crucial point: whether to drive meaningful development and public service delivery, or perpetuate a spending cycle with little innovation and limited public benefit.

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