Arbitrarily paying higher salaries in an inflationary economy will only make inflation worse.
Spot on! It's not for the lack of generosity to the workers. It is a practical matter where the increase in wages drives up inflation for the local economy. Such inflation creates a demand for even more money. The overall increased cost of goods and services has a circular effect on the wage increase; eventually, as goods and services in the market overall increase, higher wages will be needed to compensate for the increased prices of consumer goods.