How are the authorities going to raise wages and pensions?

Asia-Plus

In a statement delivered at the joint session of both chambers of parliament, President Emomali Rahmon noted on December 22 that public sector wages, pensions and student grants will be raised by 15 percent from September 1, 2018.  Some local experts consider that it is quite possible to raise wages and pensions next year while others say that it is just a populism.        

According to Rahmon, wages for special military ranks, servicemen and the staff of the power-wielding agencies will be raised 10 percent from September 1, 2017.

The president noted that economic growth and current financial opportunities of the country allowed raising wages and pensions.  

Some local experts consider that it is quite possible to raise wages and pensions next year while others say that the statement is just a populism. 

Bakhtyor Akobirov, an expert on the Tajik economy says the authorities have adopted a decision to raise wages and pensions in the hope of post-crisis development of the country’ economy.

“The authorities expect that that external trade turnover will increase next year.  In parallel, domestic production will increase and domestic consumer market will intensify.  All this will lead to increase in collection of taxes and customs duties that account for more than 70 percent of the revenue part of the country’s national budget,” said Akobirov.  “The authorities expect incomes to stand at 21 billion somoni next year, with 14.7 billion somoni of them being tax receipts, so that it is quite possible to raise public sector wages by 15 percent next year.”

Meanwhile, another expert on the Tajik economy, Safar Arbatov, says that taking into consideration the inflation rates in the country over the past three years it is not rise in wages but a budgetary correction that will just create the appearance of increase in wages.  

For the last time, public sector wages and pensions were raised in July 2016.  The minimum wage was set at 400.00 somoni.  

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