Increase in Federal salaries to benefit over 30,000 UAE expats

The Presidential decision to increase salaries of Federal civil servants, is said to benefit over 30,000 expatriates, and will improve business in the second largest Arab economy, according to analysts and officials.

However, despite the huge pay rise, the move may not lead to inflation, and the consumer price rate may still be low at two percent in 2012.

As per the Government statistics, nearly 70,800 employees can benefit from the 35 to 100 percent growth in salaries, which will take effect from 2012. This includes 40,213 nationals and 30,608 expatriates, majority of whom are from Arab countries and Southeast Asia.

According to the figures, 48 federal government establishments are covered by salary increase.

This increase will improve the job stability, productivity and performance levels. It will also offer an additional boost to federal employees to remain in their jobs, and continue with their work and efforts, said Humaid Al Qatami, the Minister of Education and Chairman of Federal Authority for Human Resources.

The analysts are of the opinion that this rise in pay scales will cost the UAE’s treasury nearly Dh.3bn a year. However, it is only a fraction of the expected oil export revenue of Dh.250bn in 2012, they said.

Posted on 6/12/2011

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