Kuwait hikes state wages

Kuwait's government, under pressure from labour unions, has announced big rises in public sector wages while ordering measures to head off inflation in the prices of basic goods.

Authorities said late on Monday that government workers would get a 25 percent rise in their basic salaries, while pensioners would receive 12.5 percent more. Any increase in private sector wages will be announced at a later date, the government said.

The wage hike follows a series of strikes last year that put pressure on state companies to increase pay packets, as well a snap election last month that saw the Islamist-led opposition win control of parliament. The cabinet is appointed by a prime minister hand-picked by the ruling family.

In the wake of this week's wage increases, the Ministry of Commerce has told economic officials to prevent any rises in the price of basic goods such as food, a top official said.

The ministry has "instructed trade controllers to handle decisively any attempt to raise the prices of basic commodities", commerce ministry undersecretary Abdelaziz Al-Khaldi told state news agency KUNA. He did not elaborate on how prices would be controlled.