Wednesday, November 21, 2007

Wanna be a bureaucrat?

Government employees get 70 percent pay hike

Nov 20, 2007 - 04:59 -

Abu Dhabi, Nov. 20, 2007 (WAM) -- All federal government employees, including civilians and security personnel of the interior ministry, will get 70 percent salary hike with effect from January 2008 salary.


I was interested to read that several government employees interviewed by Gulf News said that while they were delighted with their increase they were worried about its effect on inflation. One senior official said that three years ago when they received a major increment, traders pushed prices up to the extent that he felt increased expenses cancelled it out.

Three immediate questions come to mind. One is the general inflationary effect of such a big increase. Second is whether the increased costs will mean we all, private individuals and companies, will have to pay more for government services.

Third is the inevitable 'wot about the workers' in the private sector. Inflation isn't only hitting government sector workers.

The Gulf News story is here.

2 comments:

Serious Assistance said...

I think this move is a huge mistake. I know it sounds weird but the worst thing you can do is raise salaries during a time of high inflation. More money means people can spend more and therefore that will only produce more inflationary changes.

Raising salaries is not the solution. I am not surprised that the newspapers did not criticize the move but then the Sheikh can do no wrong.

LDU said...

70%??? Good lord, that is some pay rise.