[Syria] Government will raise public sector salaries by 400% in February

On January 5, Syria's finance minister announced that the government would raise salaries for many public sector employees by 400 per cent next month following the completion of an administrative restructuring of ministries to boost efficiency and accountability, MSN reports.

The wage hike - estimated to cost 1.65 trillion Syrian pounds or around $127 million at current rates - will be funded by existing state resources together with a combination of regional aid, new investments, and efforts to unfreeze Syrian assets held abroad.

Speaking to Reuters, Mohammed Abazeed - the finance minister of Syria's caretaker government - said,"(This is) the first step towards an emergency solution to the economic reality in the country." The minister added that this month's wages for public sector staff would be paid out this week.

The measures reportedly form part of a broader strategy by Syria's new caretaker government to stabilise the country's economy following 13 years of conflict and sanctions.

Under toppled President Bashar al-Assad's regime, public sector salaries in the country reportedly remained around $25 a month. Leaving such employees below the poverty line, along with the majority of the population, the minister said.

The hike would follow a comprehensive evaluation of up to 1.3 million registered public sector employees to remove ghost employees from the payroll and would affect those with sufficient expertise, academic qualifications, and the necessary skills for reconstruction.

Syria's state treasury has liquidity challenges as it emerges from a war with the majority of money available in its central bank Syrian currency, which has lost much of its value. However, the minister stated that the new government was promised assistance from regional and Arab countries.

"The launch of investments in the country in the near future will also benefit the state treasury and allow us to finance this salary increase," he said, adding that the central bank currently has sufficient funds to finance the next few months.

The government reportedly expects to retrieve up to $400 million in frozen Syrian assets abroad’ a potential way to co-finance the initial government expenses.

In addition, Syria's caretaker government is exploring exempting taxpayers, as far as possible, from penalties and interest and working on overhauling the tax system within the next three months to achieve tax justice for all taxpayers. A first draft is reportedly expected within four months.

"By the end of this year, we expect having a well-designed tax system that takes the interests of all taxpayers into account," Abazeed said.

Source: MSN

(Quotes via original reporting)

On January 5, Syria's finance minister announced that the government would raise salaries for many public sector employees by 400 per cent next month following the completion of an administrative restructuring of ministries to boost efficiency and accountability, MSN reports.

The wage hike - estimated to cost 1.65 trillion Syrian pounds or around $127 million at current rates - will be funded by existing state resources together with a combination of regional aid, new investments, and efforts to unfreeze Syrian assets held abroad.

Speaking to Reuters, Mohammed Abazeed - the finance minister of Syria's caretaker government - said,"(This is) the first step towards an emergency solution to the economic reality in the country." The minister added that this month's wages for public sector staff would be paid out this week.

The measures reportedly form part of a broader strategy by Syria's new caretaker government to stabilise the country's economy following 13 years of conflict and sanctions.

Under toppled President Bashar al-Assad's regime, public sector salaries in the country reportedly remained around $25 a month. Leaving such employees below the poverty line, along with the majority of the population, the minister said.

The hike would follow a comprehensive evaluation of up to 1.3 million registered public sector employees to remove ghost employees from the payroll and would affect those with sufficient expertise, academic qualifications, and the necessary skills for reconstruction.

Syria's state treasury has liquidity challenges as it emerges from a war with the majority of money available in its central bank Syrian currency, which has lost much of its value. However, the minister stated that the new government was promised assistance from regional and Arab countries.

"The launch of investments in the country in the near future will also benefit the state treasury and allow us to finance this salary increase," he said, adding that the central bank currently has sufficient funds to finance the next few months.

The government reportedly expects to retrieve up to $400 million in frozen Syrian assets abroad’ a potential way to co-finance the initial government expenses.

In addition, Syria's caretaker government is exploring exempting taxpayers, as far as possible, from penalties and interest and working on overhauling the tax system within the next three months to achieve tax justice for all taxpayers. A first draft is reportedly expected within four months.

"By the end of this year, we expect having a well-designed tax system that takes the interests of all taxpayers into account," Abazeed said.

Source: MSN

(Quotes via original reporting)