Civil servants left guessing on salary hike
Civil servants left guessing on salary hike
JAKARTA (JP): President Soeharto announced yesterday that the government will discuss the idea of raising civil servant salaries with the House of Representatives (DPR) before making a decision.
"As far as civil servant salaries are concerned, the government will discuss it with the House to find the best solution," Soeharto told a plenary House session while delivering his annual budget speech.
The House is expected to complete deliberation of the present 1996/97 state budget draft by the end of next month.
The announcement leaves 4.5 million civil servants around the country anxiously wondering if they will receive a much-needed boost to cover rising inflation.
While acknowledging the pressing financial demands facing civil servants, Soeharto said that even the slightest salary hike would have far reaching implications for the government's budget.
"Every rise in civil servant salaries has a great impact on state expenditures so all aspects must thoroughly be taken into consideration," he said.
He explained that, even without any increase, the budget for civil servants already accounts for about half of the total routine expenses in the draft budget. The draft budget allocates over Rp 27 trillion for salaries and wages.
Civil service wages have been a continuous source of concern for the government. Government jobs have lost the level of appeal experienced in the 1960s and 1970s to the higher salaries now offered in private companies.
The sheer number of civil servants, 4.5-million strong, creates a dilemma; any raise, no matter how slight, could put a severe strain on the government's financial resources.
After last year's 10-percent hike the government had to find an additional Rp 1.7 billion to cover its costs.
The highest monthly salary for civil servants at the IV/E level is still Rp 500,000 (US$217.3), while some entry-level I/A civil servants earn less than Rp 90,000.
Civil servants are also entitled to a family allowance, receiving an additional 10 percent of their basic salary for a spouse and 2 percent for each child up to two children. In addition, those living in certain areas such as Irian Jaya and East Timor are eligible for extra living allowances.
In 1993, the government raised the salary of civil servants from the lowest to highest levels, by between 53 percent and 14 percent respectively. The raise boosted the income of a level I/A government employee from Rp 51,000 to 78,000, and a level IV/E with a 24-year career from Rp 399,200 to Rp 453,600.
Inflation in 1993 was 9.57 percent and dropped to less than 4.5 percent in 1994, when there was no salary increase. Inflation last year ran at about 8.64 percent.
In his speech, Soeharto spoke of the hardships faced by civil servants due to their modest government incomes.
"The government realizes that, despite such a big budget, the civil servant's salary is very minimum compared to their living expenses," he said.
Though the government and the House have yet to determine an increase, the budget has allocated Rp 14.76 trillion to cover salary expenses for those in the central government.
This number is already an 18.9 percent increase from last year's Rp 12.41 trillion.
A further Rp 2.31 trillion will be earmarked for rice and food allowances.
Another Rp 9.49 billion is allocated as subsidies for personnel expenses in the regional governments. (mds)