Obaid Al Tayer, Minister of State for Financial Affairs, addresses a Federal National Council session this week that focused on the federal budget and in which it was announced that wages for public-sector workers would remain as they are. Silvia Razgova / The National
Obaid Al Tayer, Minister of State for Financial Affairs, addresses a Federal National Council session this week that focused on the federal budget and in which it was announced that wages for public-sShow more

Finance minister tells FNC no government pay rises



ABU DHABI // The Government has no plans to give pay rises to public-sector workers.

Salaries for government workers between Grades 7 and 14 were sufficient, the Minister of Finance, Obaid Al Tayer, told the FNC on Tuesday.

“There has been a 45 per cent addition in the salaries timetable,” Mr Al Tayer said.

“Since 2012, on the basic salary nationals filling these grades enjoy a Dh600 allowance for each newborn child, without a cap on the number of children, and a Dh125 annual bonus.”

Sultan Al Shamsi, a member from Ajman, said that given the high cost of living minimum salaries must be reconsidered.

“The overall salary of federal government Grade 10 employees under the married category is Dh7,976 a month,” Mr Al Shamsi said. “Once pension contributions are deducted, the amount is just Dh7,500.”

Lower grades earn a minimum of about Dh4,000, he said.

“Why won’t the minimum salaries be reconsidered?” Mr Al Shamsi asked.

“The lowest retirement salary is Dh10,000. Is it logical that an employee who goes to work every day earns Dh5,000, while one who is sleeping at home receives Dh10,000?”

Those in Grades 11 to 14 are employees with a middle-school education.

Mr Al Tayer said that changing salaries for those grades would mean amending the entire salary structure, leading to additional costs.

“We don’t think now is a suitable time to amend,” he said.

Mr Al Shamsi argued that housing allowances, which vary from Dh700 to Dh2,000 for these grades, are “illogical because they are not enough”.

He requested that nationals’ allowance be raised to at least Dh3,000, making the overall salary no less than Dh10,000, and pointed out that the Sharjah Government had recently raised the minimum salary to Dh11,000 a month.

“I ask the minister to look at this request from a humanitarian and social angle, because these salaries are not enough at all,” Mr Al Shamsi said, but Mr Al Tayer disagreed.

Ahmed Al Mansouri, a member from Dubai, asked about the progress of the FNC’s recommendations to amend the 1999 law for pensions and social allowances, made in May last year.

The minister said there were two amended draft laws and they were under discussion by the legislative committee. They would be forwarded to the technical legislative committee.

Mr Al Mansouri said he was unhappy with some amendments, especially those concerning women. He said many amendments made by the FNC and approved by the Cabinet had not been considered.

Mr Al Tayer said many government bodies had to be consulted before the final law was drafted. In the end, the executive board set the amendments.

Responding to a question from Marwan bin Ghalita (Dubai) about discount cards for retirees, the minister said the pensions authority had made many deals with co-operative societies and travel agents, but that retirees found better seasonal offers.

“I hope this issue is adopted by the retirees’ association,” Mr Al Tayer said.

Mr Al Mansouri recommended that the issue of retirees’ benefits go directly to Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai.

hdajani@thenational.ae

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Tax authority targets shisha levy evasion

The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.

Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".

The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.

He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.

"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.

As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.

COMPANY PROFILE

Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed 

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