UAE | Government
Pay rise 'will provide financial stability'
Employees of federal government departments praised the 70 per cent salary increase but feared that it will be followed by a new wave of price hikes.
- By Wafa Issa and Alia Al Theeb, Staff Reporters
- Published: 00:22 November 21, 2007
- Federal government employees Mahdi Al Rahma (left) and Younis Mohammad.
- Image Credit: Supplied Picture
Dubai: Employees of federal government departments praised the 70 per cent salary increase but feared that it will be followed by a new wave of price hikes.
Shaikha Eisa, media relations officer at the Ministry of Social Affairs, said that increment will reduce the disparity between the federal and local jobs but fears that the increase will result in an enormous price hike in everything.
"I fear that the traders will exploit the salary increase by pushing up their prices and greater inflation will hit the country, therefore, fierce measures should be taken by the government to regulate the pricing following the increment," she said.
Younis Mohammad, an employee at the Ministry of Education, said the increase is timely in light of the inflation.
"This increase will help many people and provide better psychological and financial stability for families and relieve them of everyday life pressures. It will also provide greater financial support for many and help them realise their investment aims," he said adding that the increase will encourage employees to work harder.
Eisa Al Zarouni, deputy head of the investigation unit at the Ministry of Labour, said that the increment will only be useful if the government regulate prices and prevent traders from increasing their commodity prices.
Expenses
"Three years ago when we received a major increment, traders kept pushing their prices to the extent that we felt that our expenses were more than our income," he said adding that government intervention to control prices is necessary to curtail inflation.
Mahdi Al Rahma, an employee at the Ministry of Education, expressed his happiness about the increase, but also fears its effects on the economy.
"I hope the increase will not lead to negative impacts, such as an increase in inflation. We were expecting this increase because of the increase in the cost of living and the changing life trends which should lead to an increase in salaries," he said.
Saeed Al Khateri, an organiser of exhibitions at the Ministry of Social Affairs, said that increase should be accompanied by regulating measures to prevent the decline of the purchasing power of the dirham as a consequence of price hikes.
"Traders must understand that they have already pushed their prices to the maximum and that the increase we have got now will barely cover their previous hikes," he said.
Government: Direct objectives
Mohammad Abdullah Al Gergawi, Minister of State for Cabinet Affairs said that the 70 per cent increase in basic salary for federal government employees, including civilians and security personnel of the interior ministry is a direct interpretation of the UAE government objectives.
Al Gergawi also said that the increase is in line with the directives of President His Highness Shaikh Khalifa Bin Zayed Al Nahyan, and orders of His Highness Shaikh Mohammad Bin Rashid Al Maktoum Vice-President and Prime Minister of the UAE and Ruler of Dubai.
- WAM
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