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‘Pay hikes, bonuses to harm national economy’ in Kuwait

Middle East : 29 September 2011

Source: ArabTimes

The government is currently studying the possibility of increasing the cost of living allowance from KD 120 to KD 220 for all Kuwaiti workers, reports Al-Anba daily quoting sources.

Sources said the proposal was presented recently in a meeting with the Civil Service Commission (CSC) to discuss the proposed salary increment for those not covered by the pay raise decisions issued earlier.

Meanwhile, Al-Mustaqbal daily has reported that the consultative committee tasked to study the local and international economic positions recommended halting the payment of salary increments and additional allowances in a recently-concluded meeting. The committee argued granting demands for salary and allowance increments, which cost billions of dinars, is not a good move at this time, because the whole world is still grappling with the economic crisis.

The committee warned about the dire consequences if the government continues to approve demands for increments, asserting this step may jeopardize the economy. and destroy the social structure due to the widening gap between various sectors in the society. It has also derided some government institutions for giving in to the demands of the protesters without taking into consideration the negative impact of such moves to the Kuwaiti economy.

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