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Money, Money, Money

The UAE government has announced that all Emirati federal government employees will see a 70 percent increase of their basic salaries.

December 21, 2009 1:30 by

The UAE cabinet has said that it will increase the basic salaries of all nationals working in the federal government by 70 percent increase, reports The National. The rise applies to nurses and doctors in Ministry of Health hospitals, teachers in government schools and all those under the federal authority, says the report.

The move will increase the basic monthly salary of ministerial undersecretaries from AED31,250 to AED53,125, while the lowest-grade government workers will  see salaries increasing from AED1,175 to AED2,000. According to the report, the gross salary includes 40 percent of the basic and 60 percent in benefits.

While the move has undoubtedly been welcomed by the UAE nationals, the timing is surprising – the effects of the global financial crisis have not subsided and the global media has not yet stopped discussing Dubai’s huge debts.

Last month, Dubai asked creditors for a six-month debt standstill for its conglomerate Dubai World and its property arm, Nakheel, claiming it was unable to meet its obligations. It also announced that it would be restructuring the company. The news shocked global markets, prompting the media to predict the end of the glamorous city.

The emirate was saved from defaulting on Nakheel’s $3.52 billion Islamic debt on December 14, after neighboring Abu Dhabi came to the rescue, offering $10 billion to Dubai on the day the sukuk matured.

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  1. Andrew on December 21, 2009 2:38 pm

    Say hello to more inflation, just when it looked like things might stabilise for a while.

  2. Craig on December 22, 2009 8:14 am

    Kipp needs to re-look at his maths surely…? 70% of 1,175 for the lowest grade worker is not “just 25aed” but in fact a more reasonable 822.50 aed taking it up to the 2,000 aed per month….agree with all the other concerns in the article though, seems really bizarre timing and a shot in their foot as well…

  3. Craig on December 22, 2009 1:22 pm

    you’re welcome…

  4. DeniseTheMenace on December 27, 2009 12:20 pm

    So what happens to non-Nationals or non-Emiratis in Federal Govt services ??? And I thought USA’s historical past will always give it No. 1 position in Racism …. Some of these “kingdoms” need to wake up (actually its better if they proceed on this path…Future generations are ill destined beforehand…)


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