Senior officials at several government ministries in Burma's capital, Naypyidaw, have told their staff that all civil servants' salaries will be increased by at least 380 percent in April.
“The current monthly salary for general civil service staff is 21,000 kyat [US $23.86],” an employee from the Ministry of Education told The Irrawaddy on Tuesday. “But after the increases, basic staff will get 100,000 kyat [$113.63] per month.”
Government sources said they had heard that salaries for staff at the Ministry of Defense, including soldiers, were to be increased by 520 percent.
Rumors about massive salary hikes first began to circulate the Burmese capital in mid-February. Since then, consumer prices for basic goods have gone up dramatically.
An official with the Ministry of Finance and Revenue said that the military government’s plan is to equate salaries in Burma's civil service with other member-states of the Association of Southeast Asian Nations [Asean], calling it “Asean standard.”
“The increase in salaries is because of the Asean uniformity requirement,” he said. “All prices and salaries must be brought in line.”
However, several Burma observers said they were skeptical on the meaning of the expression, “Asean standard,” and pointed out that there exists a massive gap between salaries of Asean citizens across the board.”
“The current military regime has increased civil service salaries several times since its coup in 1988,” said businessman in Rangoon. “But when the regime increases salaries, then inflation and commodity prices go up too.”
He also noted that the rate of exchange for Burmese kyat was about 25 to the US dollar in 1988, whereas it is now about 1,000 kyat to the dollar.
During the 22-year rule of the military regime, Burmese civil servants' salaries have increased five times: in April 1989, in April 1993, in April 2000, in March 2006, and in January 2010.
Amid the government’s plan for the most massive salary increase since 1988, the prices of everyday commodities, particularly food prices, continue to rise at marketplaces around the country.
Perhaps the two most important staples, rice and cooking oil, have increased in price substantially in the past month.
The Weekly Eleven journal in Rangoon reported that since the third week of February, the price of imported palm oil has increased from 1,950 kyat [$ 2.21] to 2,725 kyat [$3.09] for a viss [5.1 kg tin]. The journal reported that the price of palm oil in Burma is 30 percent more than on other international markets.
On Monday, Paw San Hmwe Rice, a high-quality Burmese rice, was retailing for 35,000 kyat [$39.70] per 20-kg sack, compared to 29,500 kyat [$33.50] less than a month ago.
Although Burma received more than $5 billion from sales of natural gas and jade to neighboring countries in 2010, the military-ruled nation is still one of the least developed countries in the world. The majority of the Burmese population still survive on less than one US dollar per day.
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