"An increase of seven percent is as good as no increase when compared with the rise in the prices of goods."Jakarta (ANTARA News) - Civil servants' salaries have not been hiked significantly in the draft of the 2013 state budget, Enny Sri Hartati, an economic observer at the Institute for Development of Economics and Finance (Indef) said on Wednesday.
"It is reasonable for the government to raise civil servants` salaries because inflation has also increased, but the pay hike is not in keeping with the rise in inflation," she said.
She added that the pay hike in the draft of the 2013 state budget was immaterial as civil servants` purchasing power has declined in the face of higher inflation rates.
The government currently plans to raise civil servants` salaries by seven percent through the draft of the 2013 state budget, which is lower than last year`s increase of 10 percent.
Hartati said the allocation for civil servants` expenditure, which was expected to be raised by 20 percent to 25 percent, is too low.
"An increase of seven percent is as good as no increase when compared with the rise in the prices of goods," she said.
She also criticized the imbalance in the salary increase for Level I and II officials, compared with the lower ranked Level III officials.
"The salaries for Level I and II officials have risen drastically, but for Level III officials, the increase has been insignificant," Hartati said.
(Uu.A014/INE/KR-BSR/B003)
Editor: Priyambodo RH
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