The Minister of Finance, Ndaba Gaolathe, has dismissed calls to revert public service pay dates to the old schedule, arguing that the current arrangement promotes continuous economic activity and has been widely embraced across sectors.

Responding to a question posed by Kgosi Ndhowe of the Okavango Region during a session of Ntlo ya Dikgosi, Minister Gaolathe defended the staggered payroll system introduced in April 2022 as part of the government’s post-COVID-19 Economic Recovery and Transformation Plan.

Kgosi Ndhowe had expressed concern that the current payroll structure, which spreads salary disbursements across three weeks, was disadvantaging many public service officers. He urged the Minister to consider reverting to the previous system, where all government employees were paid within the third week of the month.

In response, Gaolathe explained that the revised system was introduced to support local businesses, reduce overcrowding at shopping centers, and ensure a more even flow of disposable income throughout the month. He stressed that the shift from a single monthly pay period to a staggered weekly system had yielded positive economic impacts.

“The new schedule ensures equitable distribution of money to promote economic activity throughout the month,” Gaolathe said. “I have noted an apparent improved performance of local businesses, including SMMEs.”

Under the current structure, government institutions are divided into three pay groups. Pay Group I, comprising 18 institutions, is paid in the first week of the month. Pay Group II, with six institutions, is paid in the second week, and Pay Group III—consisting mainly of the Botswana Defence Force and the Teaching Service Management—is paid in the third week.

Gaolathe pointed to a January 2023 perception study conducted by the Ministry of Finance, which showed positive feedback from sectors such as retail, entertainment, telecommunications, and financial institutions. The study found that over 50% of surveyed sectors supported the continuation of the current system.

However, the Minister acknowledged that the study was limited in scope, covering only Gaborone and surrounding areas due to financial constraints. Plans to expand the research nationwide in collaboration with Statistics Botswana have been suspended for now.

Despite its reported benefits, Gaolathe conceded that the weekly payroll system is not without challenges. These include the financial risk of paying salaries in advance, which may lead to overpayments in the event of resignations, retirements, or deaths before month-end. “International and common practice is to pay salary in arrears,” he noted. “Paying in advance poses a risk of financial loss to government.”To mitigate such risks, the Ministry has introduced internal controls such as payroll verification before final processing. Gaolathe assured that, funds permitting, a more comprehensive nationwide study will be conducted to evaluate the long-term effectiveness of the system. In the meantime, he maintained that there are no plans to revert to the old pay schedule, stating that the current system has proven its value both economically and administratively.