Myanmar on Monday increased monthly salaries for an estimated 2 million civil servants by 20,000 kyats (24.20 dollars), or around 20 per cent, to ease the impact of inflation.

President Thein Sein announced the raise in a speech made on television on Sunday night and published by state-run newspapers on Monday.

It was timed to coincide with the start of the fiscal year on April 1.

“In the proposal for the 2013-14 annual Budget, I submitted a request of 385 billion kyats to Parliament for the increase of salaries and pensions for civil servants, and the Legislature approved this,” Mr. Thein Sein said.

There are an estimated 1.2 million permanent government employees, earning an average of 100,000 kyat a month, and another 740,000 daily workers who can earn as little as 20,000 kyat a month.

Another 760,000 former employees draw government pensions, which were to be increased proportionally.