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IMF report recommends amending ‘salary structure’ in public sector

‘Kuwait passport advances to 58th position in HPVR index

KUWAIT CITY, Jan 11: The gap between the salaries in the public sector and the private sector in Middle East and Middle Asia is the highest in Kuwait with 245 percent, followed by Bahrain, Qatar and Saudi Arabia, as per a report of the International Monetary Fund (IMF), reports Al-Qabas daily. The report recommended amending the salary structure in the public sector, and enhancing transparency.

According to the report, the salaries in the countries of the aforementioned region are the highest among the developing countries. During the period from 2005 to 2016, the countries in the region used up six percent of their annual national revenues for paying salaries, which were about one fifth of the state expenditures during that period. The GCC countries and Algeria used 3.6 percent of their annual national revenues for paying salaries. This rate is higher than that of oil-exporting countries in other regions. The rate of state employment is higher in this region than in other regions.

The rate of state employment in other developing countries represents nine percent of the total employment rate. Those countries offer jobs for five percent of citizens who are of the age to do work. On the other hand, state employment in the Middle Asia and Middle East is much higher (almost double compared to the rate in developing countries with emerging markets).

The report stated that Kuwait paid 12 percent of its national income during the period from 2005 to 2016. After Saudi Arabia, this is the highest rate among the GCC countries. The salaries for state jobs in Kuwait represented about 30 percent of the total state expenditure. State employment makes up 84 percent of the total national manpower in Kuwait, 80 percent in Qatar and 66 percent in Saudi Arabia.

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