In the ninth session of the annual meet-the-press, Bhutan’s Prime Minister Tshering Tobgay shed light on the enduring wage gap between the country’s public and private sectors, framing it as a critical obstacle to economic equality and national stability.
Prime Minister Tobgay acknowledged that while salaries alone cannot fully address the needs of workers, bridging the wage gap is essential for fostering a more equitable society. He emphasized that achieving this balance requires comprehensive and robust economic development strategies.
“Bhutan’s economy faces significant challenges that contribute to wage inequality,” Tobgay stated. “This disparity not only affects our workers but also drives skilled professionals to seek opportunities abroad, weakening our national workforce.”
Highlighting the shared responsibility between the government and the private sector, Tobgay pointed out that both entities must collaborate to create a fairer economic environment. He noted that in many instances, employees in the private sector earn considerably less than their counterparts in the public sector, a gap that needs urgent attention.
To address these issues, the Prime Minister outlined several key initiatives aimed at strengthening Bhutan’s economy:
- Economic Stimulus Plan (ESP): Although the implementation of the ESP has encountered some obstacles, Tobgay assured that adjustments are being made based on stakeholder feedback to better support the private sector.
- 13th Five-Year Plan: This comprehensive plan is expected to drive significant growth, bolstering both the private sector and the nation’s long-term economic health.
- Foreign Direct Investment (FDI) Initiatives: Targeting high-potential sectors such as hydropower and solar energy, these efforts aim to attract investments that will serve as pillars of Bhutan’s economic expansion.
- Tourism Expansion: With projections indicating an increase in international visitors, the tourism sector is poised for considerable growth, which will generate additional revenue and create new employment opportunities.
“These initiatives are designed to not only strengthen our economy but also to create new jobs and help narrow the wage gap between the public and private sectors,” Tobgay explained.
However, the Prime Minister also underscored the importance of sustainable economic growth. He warned that without it, the government might struggle to meet even the wage requirements of civil servants, let alone address broader economic disparities.
The issue of wage disparity has been brought into sharp focus by a recent significant salary hike for civil servants, ranging from 55 to 74 percent on the minimum basic pay. While this increase has markedly benefited public sector employees, private sector workers have only seen modest salary increments. This disparity has sparked concerns about inflation and the rising cost of living, highlighting the urgency of implementing measures that ensure fair compensation across all sectors.
Prime Minister Tobgay reaffirmed the government’s commitment to these economic initiatives, emphasizing that closing the wage gap is not just a matter of fairness but also crucial for national unity and economic resilience.
“As we move forward, our focus remains on building a strong, inclusive economy that benefits all Bhutanese. Bridging the wage gap is a vital part of this vision,” he concluded.
Bhutan stands at a pivotal moment, with the Prime Minister’s comprehensive approach aiming to balance economic growth with social equity, ensuring a prosperous future for both the public and private sectors.
