Saturday, November 22, 2003
Afghan civil servants get 600% pay hike
Agence France-Presse Kabul, November 22
Afghanistan has increased civil servants' salaries by 600 per cent but most will still struggle even on their new pay, finance ministry officials said on Saturday.
"This pay rise will affect 40 per cent of people working for the government, excluding the military, police and teachers whose salaries were already increased at the beginning of the year," Finance Minister Ashraf Ghani said.
Even with the increase and a $35 food allowance, the highest ranked government worker will only take home 4,825 Afghanis ($100) a month. The lowest-paid will see their salaries climb from 40 Afghanis (80 cents) a month to 280 Afghanis ($5.80) but all ranks still receive the same $35 food allowance.
Deputy Finance Minister Abdul Salam Rahimi admitted that civil servants would struggle even with their new pay rises.
"We know that the increased salary plus food allowance is not sufficient even for half a month expenses of the smallest family," he said.
"The living cost is very high in Kabul and other cities. This is the best we could do in the structure of this year's budget."
Rents in Kabul have soared, with even a rough mud dwelling without electricity and just access to a communal well or water pump costing around 50 dollars a month.
Rahimi said civil servants would have to wait for ongoing tax and customs reforms to take place before their salaries could be raised to a realistic level.
The pay rise will cost the government 397 million Afghanis for the remaining five months of the Afghan fiscal year and is backdated to October so civil servants will benefit in time for the Eid al-Fitr celebrations marking the end of the fasting month of Ramzan next week.
Afghanistan's government budget for this year is 550 million dollars, of which Kabul has to raise 200 million with the rest coming from international donors.
The country's development budget for the year is estimated at 1.7 billion dollars.
© Hindustan Times Ltd. 2003.