Fin24

50% pay hike for Guinea state employees

2012-12-16 17:22

Conakry - The government of Guinea reached an agreement with trade unions on Friday to grant state employees a 50% salary increase, ending a four-month stand-off, according to the text of the deal read on state television.

"The different parties agreed to an increase... of 50% in three phases - 10% from October 1 2012, 15% from October 1 2013 and 25% before the end of 2013," the agreement read.

After securing $2.1bn in debt relief under the World Bank and International Monetary Fund Heavily Indebted Poor Countries initiative in September, Guinea offered state employees a 10% pay rise.

The unions immediately rejected the proposal and threatened to go on strike if they did not receive a 200% wage increase.

Though Guinea is the world's top supplier of the aluminium ore bauxite and holds rich deposits of iron ore, gold and diamonds, more than half of Guineans live on less than a dollar a day.

The highest paid state employees currently earn around $200 per month.