28 Dec 2013

World Bank shrinks Tongan pay rise

6:16 am on 28 December 2013

The Tongan government has drastically cut a wage rise for public servants on the advice of the World Bank.

The cabinet has approved a 5% cost of living adjustment for civil servants to apply from next month.

Radio Tonga reports the deputy prime minister Samiu Vaipulu says initially the figure was going to be 20% but the World Bank advised against this, citing the country's financial difficulties.

A second rise of 5% will be considered in the second half of next year.