Pres Ali announces $1.9B in salary increases, duty-free allowances for graduate teachers

In keeping with his promise, President Dr Irfaan Ali on Thursday announced approximately $1.9 billion in measures for teachers, including salary increases as well as duty-free allowances.
Following a meeting with Head Teachers across the country last month, Cabinet members held consultations with several trade unions, including the Guyana Teachers Union (GTU), resulting in these interventions.
During a live stream on Thursday, President Ali outlined upward adjustments to the salary and allowance of graduate teachers including holders of a relevant Bachelor’s Degree from the University of Guyana (UG), a degree-awarding institution under the GOAL Programme, or a degree certified by the National Equivalency Board.
“All graduate teachers… shall be moved to the maximum of the scale applicable to the post they currently occupy. This will benefit over 4000 teachers at an additional annual cost of $1 billion, effective from December 1, 2023,” he stated.
Teachers will also receive an additional education allowance of $10,000 monthly for bachelor’s degree holders, which would be equivalent to $120,000 annually; $20,000 monthly for master’s degree holders, an additional $240,000 annually; and $30,000 monthly for doctorate degree holders, which is equivalent to $360,000 annually.
This revision in allowances will benefit more than 4500 teachers at an additional annual cost of $500 million. Additionally, any preexisting allowances paid in relation to the Post Graduate Diploma in Education (DipEd) will remain in place.
According to the Head of State, the adjustment to the salary and allowances of these categories of teachers, depending on the salary scale, represents a 10 to 17 per cent increase in the current minimum salary paid to these workers.
With regard to Remote Areas Incentive (RAI), there will be an upward adjustment from its current level to $20,000 monthly, effective from December 1, 2023. The President said this would benefit more than 2400 teachers at an additional annual cost of $260 million.
For example, these adjustments and salary increases will see a Graduate Senior Mistress/Head of Department now having their current salary move from $243,069 to $262,917, and with the inclusion of the revised education allowances, represent an overall 12 per cent increase, compared to the previous minimum salary paid to a Graduate Senior Mistress/Head of Department.
In the case of a Graduate Senior Assistant Master or Mistress working in the Hinterland, this category of worker will now have their current minimum salary adjusted upwards from $223,232 to $243,076, and with the inclusion of the revised education allowances and RAI, this will represent an overall 16 per cent increase when compared to the previous minimum salary paid to a Graduate Senior Assistant Mistress in an RAI area.
“…If you look at the average of the increase in salaries alone, the annualised benefit that will go to a teacher is close to $240,000 at a minimum level. When we add the allowances that will, of course, take this up further,” the President noted.

Duty-free concession
In relation to duty-free allowances, the Guyanese Leader disclosed that all teachers who hold a substantive appointment as a Senior Master/Mistress or above and are within three years of retirement and have not previously received a duty-free concession on a motor car shall be entitled to this benefit for a motor car up to 1500cc.
“This intervention is expected to cost $150 million annually. As of now, we have approximately 100 concessions that are given to teachers annually. Outside of these 100 concessions now, we are putting the position that every teacher once you are a senior master, mistress, and above, you are entitled to this concession three years before retirement in keeping with the laws. This additional benefit will cost $150 million annually,” the President noted.
According to Ali, these interventions for teachers aggregate a total of $1.9 billion in additional disposable income annually. He pointed out that these benefits will also significantly impact the pension and gratuity payments teachers would be entitled to, on their eventual retirement.
“This is the point we have to understand too. Not only the immediate benefit, but this also will bring long-term benefit to teachers in the calculation of their pensions and their gratuity,” the Head of State posited.
During last month’s engagement with Head Teachers and Deputy Head Teachers at State House, President Ali had committed to have $700 million paid out to teachers who are below the minimum of their applicable scale. The payout, which was done in October, was a one-off arrears payment for eligible teachers between the period of September 1, 2020, to September 30, 2023.
The Guyanese Leader had also pledged special housing solutions and tax-free allowances for teachers.
At the time, he disclosed that at least two commercial banks have agreed to prequalify and approve loans for teachers to start building and or to continue building their homes once they have been allocated house lots. These loans of up to $15 million will attract an interest rate of 3.75 per cent.
To lend further assistance, the President had further said that teachers who are yet to commence construction will receive subsidies from the Government for steel and cement to build their foundations.
On Thursday, President Ali said these salary increases for teachers came as the Government continued to work to resolve anomalies and disparities across comparable positions within the Public Service.
Just one year ago, the Head of State had rolled out the first phase of salary adjustments, which took effect in January of this year, benefiting more than 5000 healthcare workers and almost 9000 members of the Disciplined Services. These interventions resulted in an additional $3 billion in disposable income in the hands of these workers each year. (G8)