Pay hikes for International Monetary Fund and World Bank staff approved in a recent board meeting have drawn criticisms from U.S. and European representatives. The pay increases appeared “out of touch” as they come at a time when several countries are implementing various austerity measures, a U.K. official noted.
The U.S., U.K. and several other European countries have abstained in votes that approved above-inflation raises of 4.9 percent on salaries of IMF staff and 3.7 percent for World Bank staff, The Washington Post says. World Bank pay raises were approved June 23, while IMF raises were approved in April.
“We greatly value the hard work and expertise of bank staff,” U.K. Department for International Development spokesman Rob Kelly said. But “when governments worldwide are cutting public spending, increasing taxes, and reducing or freezing public-sector pay, to award an above-inflation pay rise risks making the bank appear out of touch.”