Pasalao

Govt confirms salary hike for state employees in October

The Ministry of Finance has eradicated any doubts in the minds of state employees by confirming to them that the government will definitely increase their salaries in October this year.

Deputy Director General of the Budget Department, Ms Bounthavy Leuangvilay, told Vientiane Times on Friday that the Finance Ministry is formulating an advisory document for various sectors to calculate the salary hike for their officials.

“The advisory document will soon be completed and sent to various sectors within this month,” she said, adding that state employees should not worry about the government's plan to raise their monthly salaries.

Ms Bounthavy confirmed that the Prime Minister Mr Thongsing Thammavong has already issued a decree to raise officials' salaries from now until 2015 so the decision is already made clear by the government.

The current salary rate stands at 3,500 kip per index, based on different levels according to qualifications, experience and position.

The Prime Ministerial Decree stated that the salary will increase from 3,500 to 4,800 kip per index in 2012-13, or 37 percent, to 6,700 kip per index in 2013-14 (91 percent), and to 9,300 kip per index in 2014-15 (a 165.7 percent increase compared to the current level).

The decree also stated that the government will also grant an allowance of 760,000 kip per person per month to cover the cost of electricity, water, and clothing.

Finance Minister Phouphet Khamphounvong told the National Assembly session in June this year that the government will give top priority to using the budget expenditure on salaries and allowances for officials.

The minister said the government has the ability to pay a salary hike to its officials aiming to enable them to better cope with rising inflation and the higher cost of living in Laos, in a time of economic uncertainty.

According to a report from the Finance Ministry, the government set the target for revenue collection at 19,543 billion kip for 2012-13, an increase of 23.94 percent compared to the previous year and equal to 24.21 percent of GDP.

Meanwhile, the target for budget expenditure is set at 23,385 billion kip, an increase of 23.23 percent compared to the previous year and equal to 28.97 percent of GDP.

In 2011-12, the government spent about 3,450 billion kip on salaries and allowances and planned to spend 4,676 billion kip for 2012-13 in response to the government's plan for the salary hike.

The Finance Ministry is committed to tightening revenue collection by plugging gaps that have allowed financial leaks, while searching for new sources of income to increase revenue.

Currently, officials' salaries range from 500,000 kip to 1.5 million kip per month depending on their index total.

In 2007, the year before the global financial crisis hit, the government increased salaries for state employees by 20 percent.

Last year, the government increased salaries once more, from 3,000 kip to 3,500 kip per index, or 16 percent.

http://www.vientianetimes.org.la/FreeContent/FreeConten_Govt.htm