UAE cabinet approves 70pc salary hike for govt. employees

Filed on November 21, 2007

ABU DHABI — The UAE Cabinet approved yesterday a 70 per cent hike in the salaries of all federal government employees from January 2008. Both civilian and the security personnel of the Interior Ministry would also benefit.

The salary increase was ordered by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, in line with the directives of the President, His Highness Shaikh Khalifa bin Zayed Al Nahyan.

The cabinet, which met at the Presidential Palace here, also approved the fourth consecutive deficit-free 2008 federal budget of Dh34.9 billion, which is an increase of Dh11.1 billion over the 2007 budget which stood at Dh23.8 billion.

Cabinet sources said the 2008 budget has been the biggest and the salary hike the highest in the history of the UAE federation.

Civilian and security personnel pensioners of the Interior Ministry would also enjoy the 70 per cent salary increase.

Shaikh Mohammed has directed the Ministries of Finance and Industry to quickly implement the order.

The budget included the Dh1.4 billion financial allocations for implementation of the federal government’s strategy announced by Shaikh Mohammed. It also contains allocations resulting from the 70 per cent increase in salaries of employees at federal government, personnel at the Interior Ministry and retired civilian and military personnel.

Dh9.7b for education

Education received the largest allocation in the budget with Dh9.7 billion earmarked for general and higher education. The Ministry of Education will receive a budget of Dh7.1 billion to enable it implement the strategic plan of developing school environment and to introduce modern technology methods. Higher education budget was also boosted to Dh2.3 billion.

MoH gets Dh2.5b

The Ministry of Health’s budget received a 66 per cent increase to reach

Dh2.5 billion, while an amount of Dh1.02 billion was added to the budget of Interior Ministry to enhance security sector.

The amount will be used to maintain security and stability, to enhance capabilities of police personnel, to modernise civil defence equipment, to continue the e-passport project, to boost Emiratisation plan and to support the budget of Emirates Identity Authority.

The budget also covers the increase in salaries of diplomats and the drive to enhance diplomatic representation, ordered earlier by President Shaikh Khalifa.

Dh199.4m for Ministry of Justice

The Ministry of Justice also received a boost of Dh199.4 million to implement its strategy, aimed at creating a modern catalyst for legislation, improving service and developing alternative systems for litigation.

The Culture, Youth, Sports & Community Development sector will use its Dh138 million grant to bolster its strategy, aimed at preserving national identity, spreading cultural awareness, enhancing youth role and supporting UAE Football Association.

Dh111.5 million for economy sector

The economy sector was granted a Dh111.5 million boost to streamline its strategy of updating economic laws, providing attractive environment for investments and supporting small and medium-sized enterprises.

A Dh137 million grant was ear-marked to strengthen Labour Ministry’s efforts to develop a comprehensive demographic policy.

The 10 key programmes in the 2008 budget comprised of MoE’s general education (Dh6.5 billion), MoI’s Police services (Dh2.3 billion), MoH’s curative services (Dh1.9 billion), MoSA’s social development (Dh1.3 billion), MoFA’s external affairs (Dh 1.2 billion), FEWA’s electricity production & distribution (Dh1.01 billion), UAE University’s education services (Dh1.06 billion), Higher Colleges of Technology’s education services (Dh800 million), MoPW’s roads network (Dh544 million), and MoI’s internal affairs (Dh515 million).

The total cost for infrastructure projects in the budget has been increased to Dh8.6 billion from Dh6.6 billion in 2007.

The cabinet, as per the directives of Shaikh Mohammed, also approved the appointment of Shaikh Mansoor bin Zayed Al Nahyan, Minister of Presidential Affairs, as the board chairman of the Emirates Investment Authority.

It also gave the go-ahead for the setting up of a UAE-Pakistan Joint Economic Committee, as well as the setting up of a mission each in Poland and Vietnam.

The cabinet also approved a number of proposals, including the final statement of the Real Estate Bank; the convention on the prohibition of the development, production and stockpiling of bacteriological and toxic weapons; the setting up of a UAE-Czech Republic Joint Committee; and the organisational structure of the Ministries of Finance and Industry. The Cabinet also reviewed a number of federal projects and laws and took appropriate decisions on them.

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