BURMA: DESPITE PAY RAISE, CIVIL SERVICE SALARIES

UNCLAS SECTION 01 OF 02 RANGOON 000054 SENSITIVE SIPDIS STATE FOR EAP/MLS, INR/EAP, PACOM FOR FPA E.O. 12958: N/A TAGS: ECON EFIN ETRD PREL PGOV PINR BM SUBJECT: BURMA: DESPITE PAY RAISE, CIVIL SERVICE SALARIES REMAIN LOW RANGOON 00000054 001.2 OF 002 Summary -------------- ¶1. (SBU) Effective December 31, 2009, Government of Burma (GOB) employees in wage and salaried positions received pay raises. For the lowest paid employees this increase more than doubled pay, to just over USD1 per day. Higher paid officials saw more modest gains and the highest salaries now top out around USD220 per month. Inflation since the last pay increase in April 2006 offsets most of the gains. Despite this election-year pay raise, public sector employees remain poorly paid and many face pressure to find outside sources of income, either licit or illicit. End summary. Salaries Double in Some Cases... -------------- ¶2. (SBU) Confirming rumors that have been swirling about an election-year pay increase, the GOB's official gazette published a notice January 22 that civil servants have received raises. The notice, issued by Minister of Finance and Revenue Major General Hla Tun and dated December 31, 2009, cited Tatmadaw (Burmese military) concern for the welfare of civil servants and the approaching Armed Forces Day (March 27). The new scales revealed in the announcement are substantially higher than those in effect between 4/2006 and 12/2009. ¶3. (SBU) Under the new schedule, GOB wage workers are paid at the rate of 1100 Burmese kyat (K) (USD 1.10 at the prevailing unofficial exchange rate) per day, more than double the previous daily wage of K 500 (USD 0.50). Salaried workers also received substantial increases. For those on the lowest-paid tier, salaries basically doubled, while those in the higher tiers saw more modest gains. The last GOB pay increase was in April 2006 when wage workers saw their pay jump from K100 to K500. But Don't Quit Your Night Job... -------------- ¶5. (SBU) Even with these seemingly significant pay increases, likely intended to curry favor in advance of the 2010 elections, GOB employees are very poorly paid. Wage workers now make about USD 1 per day and the highest paid civil servants (below minister level) earn about USD 220 per month. Many civil servants operate private businesses or have second jobs to augment their government salaries. Low government salaries also contribute to widespread official corruption. Transparency International ranked Burma as the third most corrupt country in its latest rankings. While the higher salaries are undoubtedly welcome, they are unlikely to remove the financial pressures on most civil servants. Accurate inflation estimates for Burma are elusive; but knowledgeable sources place 2006-2009 cumulative inflation in the neighborhood of 50 percent. For the lowest paid workers this pay increase might actually be a modest increase in purchasing power, but those on the higher rungs of the civil service ladder actuall y have less purchasing power now, after the raise, than they did in 2006. ¶6. (SBU) The total number of public sector employees in Burma is unclear. A 2005 estimate presented at an ASEAN conference on civil service issues described the GOB civil service as approximately one million strong. More recent estimates are not available. Likewise, breakdowns for numbers of employees in each pay category are not available. GOB Salary Scale -------------- RANGOON 00000054 002.2 OF 002 ¶7. (SBU) The GOB monthly salary scale follows (K1,000 = approx. US$ 1). Title Old Salary New Salary Assistant Helper K15,000-K20,000 K35,000-K40,000 Helper K21,000-K26,000 K41,000-K46,000 Lower Divisional Clerk K27,000-KK32,000 K47,000-K52,000 Upper Divisional Clerk K33,000-K38,000 K53,000-K58,000 Branch Clerk K39,000-K44,000 K59,000-K64,000 Superintendent K45,000-K50,000 K65,000-K70,000 Staff Officer/ K80,000-K90,000 K100,000-K110,000 Assistant Manager Assistant Director/ K100,000-K110,000 K120,000-K130,000 Manager Deputy Director/ K120,000-K130,000 K140,000-K150,000 Assistant General Manager Director/ K140,000-K150,000 K160,000-K170,000 Deputy General Manager Deputy Director General/ K160,000-K170,000 K180,000-K190,000 General Manager Director General/ K190,000-K200,000 K210,000-K220,000 Managing Director DINGER