Proposed salary hike for civil servants approved

The Union Parliament approved a proposal on November 12 to increase civil servants' salaries in the coming fiscal year. 

MP Zaw Myint Pe submitted the proposal urging the Union Parliament and the Union Government to increase staff salaries for the 2015-2016 fiscal year. 

This will be the fourth time the Thein Sein government would raise civil servant salaries and government pensions since it took office in 2011.

Myanmar now employs some 2 million civil servants. 

Under the latest increase effective on April 1, 2014, the lowest bracket of civil servants received extra Ks 20,000 per month (about $20).

Win Shein, Union Minister for Finance said at the Union Parliament on November 12 that the Ministry of Finance would proceed with the proposal.

"This proposal is very auspicious. I would like to add some points about the salary increase. The government's main duty is to serve the interests of people and the country. The government and civil servants are just like the parent and offspring. It is the duty of the government to serve the interests of its offspring," Win Shein said. 

“The government is making constant efforts to increase salaries for civil servants. In doing so, it also needs to take account of salary increases for retired civil servants. The government also needs to adjust the figures both on paper and on the ground,” he added. 

Lae Lae Thein, Deputy Minister for National Planning and Economic Development, said she agreed with the salary increase proposal.

The locals have been complaining about the increasing cost of living.

The World Bank estimates inflation in Myanmar at 7 per cent this year, and has called for it not to be allowed to exceed 10 per cent.

Inflation concerns are on the rise recently due to the weakening of the kyat against US dollar. 

On November 10, the kyat fell to the new low, with the official rate set at 1,016 per dollar. And it has stayed at the level until November 13, according to the Central Bank of Myanmar.

It was the new low since the official exchange rate was allowed some flexibility in April 2012 by the government of Thein Sein, which has opened up the country after decades of military dictatorship.

The kyat was weaker at a private exchange counter, sold at 1,024 per dollar.  

The kyat weakens amid growing demand for the US currency for imports, and fuelling concerns of inflation.

The demand for dollars was being driven by the country's rapid consumption, especially of manufactured goods.  The trade deficit was around 3 billion dollars for the first half of the current fiscal year to the end of September, on exports of US$6 billion and imports of $9 billion, it said, citing the Commerce Ministry.

The cost of living in Myanmar is skyrocketing. The influx of investors boosted the prices of properties beyond the reach of many.