Salary rise for state officials can take effect in 2010: Minister

Finance Minister Sri Mulyani Indrawati said Wednesday the new remuneration structure for state officials could take effect in the 2010 fiscal year.

“The government has calculated the remuneration reform which can be implemented starting in January 2010,” Mulyani told a media conference at her office. Also present was Administrative Reform Minister EE Mangindaan.

She added, however, the government urgently needed new methods to determine state officials’ salaries, including through job evaluation and job grading.

"The design, methodology and tools required are ready for operation. At present we have a system to determine remuneration which is comprehensive, fair and integrated,” she said.

Mulyani said the new remuneration structure followed the President’s instruction in December 2005.

“The legal basis of the current remuneration system can be found in a number of laws and over 35 government regulations, presidential decrees, presidential regulations, ministerial decrees, which only show inconsistency,” Mulyani said.

She added that state officials in general were underpaid despite receiving allowances, so that many officials earn extra income through internal policies in their respective institutions.