Dubai Government employees will receive a pay rise under a new scheme approved by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai.

Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, announced the move. He said the new salary scheme would be backdated to January 1 and aimed to improve morale among staff.

Workers will receive an average salary increase of 10 per cent while "professional employees" will receive a salary increase ranging from 9 to 16 per cent.

The scheme aims to “further enhance government excellence by investing in human capital and retention of talent”, Sheikh Hamdan said on Monday.

To improve work-life balance for staff, employees will be allowed to work flexible hours and take on part-time employment.

The scheme also introduces a minimum wage for new Emirati graduates and affects risk and air ticket allowances, medical insurance and end-of-service benefits.

“We are significantly focused on developing people and are committed to the principles of fairness and equal opportunities,” Sheikh Hamdan said.

The Crown Prince also formed a committee to oversee the implementation of the scheme.

Led by Abdulla Al Falasi, director general of the Dubai Government Human Resources Department, the committee will approve the career-grade placement lists based on the grades and salaries defined in the new scheme.

It will also be responsible for explaining the new grades and salary scheme to all Dubai government departments.

"The leadership directed us to prepare for the next 50 years and we are committed to delivering on our responsibilities," Mr Al Falasi said.

Khalid Al Awadhi, an executive director at Dubai Municipality, told The National he believed the new scheme would increase employee productivity.

“This decision will provide social stability and increase productivity among all the workers,” Mr Al Awadhi said.

“Our government always looks for what is best for the people and this scheme will definitely encourage employees to be more innovative."

Yousef Assad, 44, a government employee from Syria, also welcomed the news.

“This step will increase productivity and dedication,” Mr Assad said. “It will also help to build up good relationships between employees and the institutions where they are working."