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View Full Version : Central Bank left out, government wage cap advances



NewsWhore
07-26-2012, 04:30 PM
The commission on Social Security presented the plenary session of the Senate with a report containing changes to the bill that would cap government salaries. The latest proposal says that the President of the Republic, the Chief Justice of the Supreme Court of Justice and the presidents of the Senate and the Chamber of Deputies will each receive RD$500,000 per month (US$12,771).

Central Bank officials would be excluded on grounds that Article 225 of the 2010 Constitution establishes that the Central Bank has its own legal standing, assets, and operational, budgetary and administrative autonomy. Therefore, the proposal that the President be the state's highest paid employee is eliminated.

It is still uncertain whether employees at the Department of Taxes (DGII), Superintendence of Insurance and Banks, among other institutions known for their high salaries, will be subject to the salary caps to be established by the law.

The Vice President of the Republic and the presiding judge of the Constitutional Court would receive RD$400,000 (US$10,217), the chief magistrate on the Superior Electoral Court will receive RD$375,000 (US$9,578), while the heads of the Central Electoral Board (JCE), the Chamber of Accounts, the Public Defender, the ministers, the Attorney General will all have salaries of RD$350,000 (US$8,939).

The legislation will be discussed during the next Senate session and the president of the social security commission Jose Maria Sosa guaranteed that it would be passed before 16 August, prior to the start of the next administration. President Leonel Fernandez is expected to convene legislators to an extension of the present legislative session to allow for the time to pass the bill prior to the change of government.

According to the proposal, the salary scale for the high ranking officials of the central government, the chiefs of the different branches of the Armed Forces, the National Police and the other officials of the ministries, departments and decentralized and autonomous entities and others in government will be set once the bill is passed. Other regulations for Executive Branch staff are expected, following recommendations to be made to the new government by the Ministry of Public Administration.

The Dominican government is the largest employer in the country. Political patronage has lead to hundreds of thousands of high-salary positions being created at a high cost to tax payers. Government jobs are usually accompanied by vehicle-purchase plans, and other benefits such as mobile phone use and travel expenditures.

Economist Nelson Suazo says that in 2004, the government paid RD$29 billion in wages, but by 2011, after seven years of the Fernandez administration known for widespread political patronage, government wages were costing RD$80 billion, as reported in Hoy.

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