UAE Federal Government employees get 70 per cent pay hike

Abu Dhabi: All federal government employees, including civilians and security personnel of the interior ministry, will get 70 per cent salary hike with effect from January 2008 salary.

The salary increase was ordered today by the vice President, Prime Minister and Ruler of Dubai, His Highness Shaikh Mohammad Bin Rashid Al Maktoum, in line with the directives of President His Highness Shaikh Khalifa Bin Zayed Al Nahyan.

The Cabinet, during a meeting on Tuesday morning at the Presidential Palace here, approved the federal budget for 2008 of Dh34.9 billion, which is an increase of Dh6.7 billion over the 2007 budget which stood at Dh23.8 billion.

Cabinet sources said the 2008 budget is the biggest and has the highest increase rate in the history of the UAE Federation.

Civilian and security personnel pensioners from the interior ministry will also enjoy the 70 per cent salary increase with effect from January 2008.

Shaikh Mohammad has directed the ministry of finance and industry to quickly implement the order by effecting the salary increase on the January 2008 salary of the affected persons.

It is a simple economic problem.Before when both the sectors pay was less, the demand for goods was less and this helped in reduce the price. Now since they have a pay rise they can now demand more of goods and can pay for them. The supply is same hence increase in price.
Resalat
Dubai,UAE
Posted: November 21, 2007, 13:54

Its good to hear about such an enormous increase in the pay scale. But the private sector also needs the attention of the higher ups as they constitute majority of the work force of UAE, who also face the same problem of inflation as people working for the government sector.
Zaheer
Dubai,UAE
Posted: November 21, 2007, 13:54

Very Good hike for Govt. employees which I have ever seen before in UAE. But what about private sectors?It would be recommended that the Govt. should strictly instruct the private sectors to do reasonable hike to their employess based on the current market rates.
Ashraf
Dubai,UAE
Posted: November 21, 2007, 13:38

Wonderful order from the Government! But what about the private sector employees? Will the government extend this wage privilege to them too so that they also can meet with the expected increase in the cost of living due to this new wage increase itself?
Detta
Dubai,UAE
Posted: November 21, 2007, 13:15

Congrats all Government servants. May God give you more because price hikes are going up and up.
Nadeem
Sharja,Pakistan
Posted: November 21, 2007, 12:51

I work in Emirates Transport. As a driver my salary also increases 70 per cent. Thank you
Mahmood
Abu Dhabi,UAE
Posted: November 21, 2007, 12:43

Instead of hoping for salary increases and since the most severe rise in cost of living is on the rent, the government should have a ceiling on rents based on location and size of the house/apartment with no annual increases for 3-5 years at a time. Alternatively like Saudi jobs should come with housing included. Companies should be encouraged and helped to purchase their own staff buildings. This will make all the difference and solve the traffic situation to a very large extent.
Erica
Dubai,UAE
Posted: November 21, 2007, 12:40

It will actually be great if also the employees of the private companies would also get an increase on their salaries. The cost of living in the UAE is getting high and us, non-government staff are also affected.
Vhodz
Dubai,UAE
Posted: November 21, 2007, 12:09

Thanks to His Highness and gratitude to this generous country. Day by day, their Royal Highnesses prove that they are the real leaders who care about the prosperity of their people. Congratulations to everybody living in this country.
Hafed
Abu Dhabi,UAE
Posted: November 21, 2007, 11:44

At least the government is there for the government employees to look after to get their salary hike, but what about the private sector? Shall we still have the same salary when the expences are reaching the sky?
Kishore
Sharjah,UAE
Posted: November 21, 2007, 11:16

Its amazing! Its called Ruler of the People. It is something like profit sharing with the workers and both the boss and the employeee are enjoying the fruits of the hard work. Good pace with the developement.
Aftab
Bangalore,India
Posted: November 21, 2007, 10:36

Congrats to all the Goverment employees. But such an increase will automatically increase the price of essential commodities which is already in a higher price. As private sectors will not increase the salary even half of 70% this will affect the economy badly.
Deepak
Dubai,UAE
Posted: November 21, 2007, 10:27

I just hope that prices are NOT incresaed by the same to swallow such a nice increase!! Dreaming.
Ossama
Dubai,UAE
Posted: November 21, 2007, 10:23

This is great news. The salary increment of 70% for UAE Federal Government employees. This salary increase must be due to the inflation and ever-rising rents. But, can the Federal Government do something for the common man, who is also suffering from the effects of inflation, can the Federal Govt. arrange a pay hike for each and every person working in the UAE?
Rajesh
Dubai,UAE
Posted: November 21, 2007, 10:19

I deem it timely as well for all companies in the UAE to raise the salaries/wages of their employees making it competitive enough to meet the rising standard of living in the country.
Jules
Abu Dhabi,UAE
Posted: November 21, 2007, 09:39

70% wage increse for Federal employees of UAE, wow. I thinks it's a great for the employees, I am sure the news of 70% wage increse will not only bring happiness but also will motivate the employees and they will work harder and bring some possitive result.
Ashraf
Atlanta,USA
Posted: November 21, 2007, 09:38

The efforts to offset the effects inflation is lauded. But will this set an example for the private sector? Its high time private companies making huge turnovers be empathetic towards their employees. Even they have the right to survival in Dubai.
Rijosh
Dubai,UAE
Posted: November 21, 2007, 09:32

If Government sector people getting 70% hike in salary, what about private sector people. We are also living in UAE. Increase of cost living effects private people sector employees. This is not fair only getting hike to Government sector people.
Seema
Dubai,UAE
Posted: November 21, 2007, 09:15

Its very good news for the government employees, Thanks for the government, At the same time private sector people working more but getting less. The price hike and other all the things are affecting private sector people too. So the government should take some initiative reg the salary revise for private sector also.
Augustin
Abu Dhabi,UAE
Posted: November 21, 2007, 09:15

This is a good step, i guess, but what about the people who are working under private sector? I feel the living expenses is really too much here to live with salaries in private sector.
Ravi
Abu dhabi,Uae
Posted: November 21, 2007, 09:14

Ref. to your news about the salary increase for government employees. I think you should have mentioned clearly that the 70% increase is in the basic salary. Unlike the private sector the basic salary of expatriate government employees - especially those in the middle and lower grades - is only half the total salary. I want to make this clear because this information will be an incentive for the already high prices of commodities to go higher.
Jenny
Abu Dhabi,UAE
Posted: November 21, 2007, 08:56

I would say it is very generous and timely decision. At the same time it should make sure that living expenses should not rise as it may drastically affect the majority of people those who working with other Govt. dpts and Pvt. sectors since there is no decision had made so far to increase the payout for them.
Kumar
Dubai,UAE
Posted: November 21, 2007, 08:26

This is a positive step taken. But this should be expanded to private sector as well. The cost of living is gone up for everybody. For government employees as well as private sector employees.
Dawood
Dubai,UAE
Posted: November 21, 2007, 08:19

I think the pay rise, although more than acceptable to the staff themselves, will once again distort the economy and we will all see price hikes like we did last time, this time maybe even higher.
Gash
Dubai,UAE
Posted: November 21, 2007, 07:20

Very thoughfull of government for it's employees. Looking forward to see Local Government Employees getting the same attention, otherwise there will be surge of local government staff resigning and moving towards Federal Government Offices.
Karkain
Dubai,UAE
Posted: November 21, 2007, 06:48

This increase will lead to all consumable expenses high immediately. How they will balance non-government employee's salary?
Masuda
Sharjah,UAE
Posted: November 21, 2007, 06:38

It is laudable efforts to be appreciate by one and all in the UAE. Authorities have thought practically based on the high rate of inflation prevailing. It will be nice if they enact rule to incrrease considerable increase in the private sectors also.
Manoharan
Dubai,UAE
Posted: November 21, 2007, 05:35

As a result of the 70% pay raise, of course there will be terrific price hikes by those who provide consumer goods.Only problem is, those who don't get the 70% pay hike will be the ones who really suffer because they will be paying the much higher prices without the comfort of a raise.Good for those who get the big pay raise, and tears for those who don't.
Robb
Houston,USA
Posted: November 21, 2007, 02:43