100% pay rise for expats

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PAY HIKE: Umm Al Qaiwain is considering a 100% pay rise for expatriates working in government departments. (Getty Images)

UAE emirate Umm Al Qaiwain is considering giving expatriates working in the public sector an unprecedented 100% pay rise under a new civil service draft law being proposed.

The pay hike will cover all foreign workers employed by local government departments, UAE daily Khaleej Times reported on Sunday.

The newspaper did not say in its report when the draft law would come into force.

The move comes amid growing concern over inflation in the UAE, which soared to a 19-year high of 9.3% in 2006 and probably accelerated to 10.9% last year, according to National Bank of Abu Dhabi (NBAD).

Investment bank Merrill Lynch has predicted inflation could even top a 20-year high of 12% this year on the back of skyrocketing housing and food costs and the falling value of the US dollar, to which the dirham is pegged.

The rising cost of living has seen countries across the GCC increase public and private sector pay as well as subsidise basic goods in an effort to offset the effects of inflation.

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READERS' COMMENTS

Disagree that salary increase causes inflation
Posted by Nitin, Dubai, UAE on Tuesday 15 April 2008 at 17:06 UAE time

I totally disagree with Mr. Ralph that things like salary increase will give rise to inflation. I don't know why poor salary class has to take all the pains and only the rich businessmen get to enjoy the growth phase. Surprisingly when prices of Properties, Oil, Gold, Steel, Cement etc. touch the roof then it is termed as sign of growth and prosperity without looking at the fact whether the ultimate consumer be able to afford it or not.

Salary increase happens in the last when people start crying due to the abnormal level of cost of living.

Major imbalance is caused not only due to salary mismatch but also due to the non-participation of poor class in the growth phase. Some capitalists may not agree with this socialistic approach but this is also a fact.

Inflation and salary raises
Posted by Ralph Cook, Dubai, UAE on Monday 14 April 2008 at 19:26 UAE time


Increasing salaries like that causes inflation!
Also it is going to cause huge earn imbalances between private and public sector workers. Private sector raises are high but not 100%.
The Middle East, South Asia and countries such as China are avoiding the issue. To cool inflation pain has to be applied i.e. not raising salaries to curb spending. The economy is overheating. Growth is needed but it must be controlled growth.

INTELLIGENT GOVERNMENT
Posted by RAJENDRA ANEJA, DUBAI, UAE on Monday 14 April 2008 at 14:27 UAE time


This is a bright and intelligent government. it will be able to hold on to its talent!!

GLOBAL FOOD CRISIS
Posted by RAJENDRA ANEJA, DUBAI, UAE on Monday 14 April 2008 at 14:26 UAE time


The riots pertaining to fuel and food prices parts of Africa , Egypt, etc., are a warning to the world community. What is the use of wasting money to send people and ships into space, fashion brands, larger civilian aircraft, sophisticated weapons of war and destruction, if we cannot even provide a simple meal, at an affordable price, to all the 6 billion people in the world?

Prices of food products and grains have increased by 20 to 100% in the last 6 months. Yet, no world leader or association, has focused on this subject. This is due to the fact that the tables of the rich and powerful yet continue to be laden with fine caviar and delectable wines; it is the poor in the villages and slums who are going hungry.

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