Civil servants get 6% increase

The Cabinet yesterday approved a 6-per-cent salary increase for 300,000 junior officials, retroactive to May 1.

"The increase will cover civil servants, soldiers, police officers, teachers and full-time employees," Finance Minister Surapong Suebeonglee said.

The pay increase will cost the government Bt68 million a month, or Bt340 million for all of fiscal 2009.

Civil servants ranked C1 to C5 will enjoy the salary adjustment, with the C1 rate rising from Bt7,700 to Bt8,200 and the C5 rate from Bt11,000 to Bt11,700.

Surapong, who chairs the national salary committee, said that while this would increase money in circulation, the government estimated that the pay rise could cover the higher cost of living particularly for low-level civil servants and full-time employees.

The move follows Prime Minister Samak Sundaravej's policy to help low-income earners cope with rising living expenses, he said.

However, not all civil servants are included this resolution, as the government needs to take into account inflation as well as its revenues, he added.

Higher oil prices have helped push up the cost of living. Last month, the consumer price index hit 6.2 per cent, the highest level in two years. In the first four months, the CPI was up 5.3 per cent from the same period last year.

Energy Minister Poonpirom Liptapanlop also said after the Cabinet meeting that she would discuss with the three power utilities tomorrow the possibility of cutting the fuel adjustment factor for the June-September round.

The three state enterprises have not yet spent more than Bt1 billion of funds allocated for power-plant construction.