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Kuwait Govt Plans To Suspend Major Pay Increments

Middle East : 24 July 2011

Source: ArabTimes

There are indications the government in the coming phase will suspend major increments or salary scales for personnel working at the government sector except for the urgent and necessary due allowances, reports Al-Seyassah daily quoting a reliable source as saying.

The same source, who declined to reveal his name, said the decision is based on an extensive report the Finance Committee at the Supreme Council for Planning and Development prepared on the current financial state of the country, founded on the internal debt crisis the USA is facing and major difficulties some Western countries and importers of oil are facing.

According to the report, the council confirmed the distribution of enormous funds to pay increments to workers in the government sector in the past few years led to unprecedented leap in the country’s budget that recorded 20 billion dinars, even though the sum does not cope with the country’s population or economic activity.

The source said the senior officials reviewing the draft report were greatly worried about huge figures included in the report. At the same time, they warned of the probability of the oil price declining as a result of the debt crisis in America. They expected the Western economies would experience a recession when demand for oil slumps.

The report also said the approval of new salary scales for teachers is enough, based on government’s vision which will be fulfilled in October, the daily added. The source stressed the expected increments for the oil sector workers and labor unions will not be significant, indicating the only increment that may be approved in the coming phase will be for Kuwaitis working at the private sector.

He stressed those workers have not benefited from the salary scales or increments that were previously approved for citizens at the government sector.

However, this increment will not exceed KD 50, and the groups which deserve the increment will be identified as per academic qualifications and years of experience.

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