In a move described by observers as unhelpful and aiming to avoid a revolt like the one that forced Tunisian President out of office and out of the country this month, the Cabinet approved at its weekly meeting on Tuesday to start implementing the third phase of the Pay Strategy as from next month.
It ordered the Ministries of Civil Service and Insurance and Finance to prepare the executive mechanism to start the strategy that calls for a 30 per cent rise in the wages of the state employees.
A few days ago, President Saleh announced in his speech to the annual conference of the army and security commanders a rise in the wages of the employees in the army and civil institutions within the third stage of the Pay Strategy, nearly as the above percentage.
The announcements of the President and the Cabinet came after the Syndicates and Organizations Union urged in December the government to fix the deep deficiency in the wages system.
They also followed the announcement of the Customs Authority that revealed the income tax law No 17 for 2010 has already come into effect as of January.
The law will help improve the salaries of the public employees at the public and mixed sectors, the authority said.
Under the law, the income tax is cut by 50 per cent and the annual exemption will be raised to YR 10000 instead of the previous ceiling of YR 3000, it added.
However, observers played down that the move will help improve the livelihoods of the employees, saying the rise can't cover extreme poverty the state employees live in.
Observers cited by some media outlets said the rise comes in a move coinciding with the support of the Yemeni people to the Tunisian revolt that changed the Tunisian corrupt regime.
Other observers, however, said the government is deceiving the people as the controversial parliamentary elections delayed two years in 2009 near.
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