Public salaries rise

Cost of living increase takes toll

Salaries, wages, and benefits paid to public employees grew by 12 percent on an annual basis in the first nine months of 2012, according to the Ministry of Finance (MoF). At end-September 2012, salaries and wages totaled $2 billion.

Salaries, wages, and related benefits represent the largest component of total primary spending, accounting for 31 percent. Basic salaries were up by 11 percent, mainly due to the increase in cost of living payments. Cost of living adjustment and various retroactive payments represented 16 percent of basic salaries.

The cost of living increase was approved for public sector workers in August last year and was enforced, with retroactive effect, starting February 2012. Payments started to be made in September. Retroactive payments (for the period February-August) also started to be made that month and were scheduled to be fully settled by December 2012.

Starting January 1, the cost of living increase was included in the concerned employees’ basic salaries. The monthly cost of this increase was estimated at $40 million.