Public servants can expect a pay rise of 20,000 kyats a month from the start of the next financial year on April 1, President U Thein Sein told a meeting of the Planning Commission in Nay Pyi Taw on January 7.
He said retired public servants could also expect an increase in their monthly pension in the 2014-2015 fiscal year, but did not elaborate.
President U Thein Sein said the government had analyzed the country’s financial situation and had taken inflation and prospects for economic development into account before deciding on the increases.
Though many welcomed the decision, some MPs and economists have urged the government to implement a strategy aimed at controlling inflation.
U Maw Than, an economist and retired rector of the Yangon Institute of Economics, told Mizzima on January 7 the government’s efforts should be applauded but expressed concern about the impact of inflation.
Some public servants have reacted cautiously to the news.
“We will be very happy if this news is true,” said a police officer in Yangon.
U Ye Tun, a Pyithu Hluttaw MP from Thibaw constituency, said a better taxation system was needed to help curb inflation.
“Curbing inflation at the time of a salary hike crucially depends on the extravagance of corrupt officials in their spending,” U Ye Tun said.
The government has increased the monthly salaries of public servants for the past two years.
In the 2012-2013 fiscal year, salaries were increased by 30,000 kyats, and last year they rose by 20,000 kyats.
The government also increased by 1,000 kyats the casual pay of daily wage earners employed by government departments and affiliated organizations.
Salaries for public servants in government departments start at about 60,000 kyats a month.
Primary school teachers receive about K73,000 a month, and high school principals are paid up to K120,000 a month.
The President draws only 1.5 million kyats a month of the 5 million kyats salary to which he is entitled.
