Salary increases for public servants by year end – President reassures

Public servants have been reassured that they will benefit from salary increases from the People’s Progressive Party/Civic (PPP/C) Government before the end of this year.
This commitment was reiterated by President Irfaan Ali on Friday during a virtual press conference. He was asked about talks with the Guyana Public Service Union (GPSU) on the salary increases.
In response, however, the Head of State reassured that his Administration is committed to fulfilling the promise he made several months ago.
“We are committed to increases for the public servants and that commitment will be fulfilled before the end of the year,” the President stressed.
Back in August, the Head of State had announced retroactive salary increases for public servants by year end
But at the time, President Ali had pointed out that his Government has a holistic vision for public servants that is not just about pay hikes. He had said they want to empower public servants and ensure that they become homeowners, among other things.
“We’re looking at the mechanism that will allow every public servant to own their own home… We want to empower public servants so that their children too can benefit from the scholarship programme. The public servants themselves are benefiting. And we are happy about this. So let us not limit the discourse only to the tax waivers and [salary increases],” he had stated.
In the meantime, the President had urged public servants not to fall for the political gimmicks of certain unions and their leaders.
“We have to be careful. And my appeal to public servants, to teachers, is a very simple appeal. Trust the Government. By the end of these five years, you will all be better off. Do not be played politically… I will engage with you in a discussion so you understand where our country is heading. You’ll understand the opportunities of the future. And of course, you will be integrated in this new Guyana,” President Ali said.

At the beginning of the year, public servants had benefitted from a one-off $25,000 cash grant from the PPP/C Government. Approximately $2 billion was budgeted for that initiative which was said to have benefitted over 60,000 workers.
The beneficiaries of this grant included workers within the Central Government, statutory bodies, subvention agencies, public corporations, teachers, medical workers, members of the Joint Services, Government pensioners and staff of the University of Guyana, to assist them with the challenges associated with the COVID-19 pandemic.
Then in the 2021 Budget, some $10 billion was budgeted in the estimates under the heading, “Revision of Wages and Salaries” – a huge part of which the Government had said was for salary increases for public sector workers.
Despite this, the GPSU had announced back in April that it had written to President Ali on the issue of negotiations on wages, salaries, and allowances for public servants, which they had said was overdue.
Further, another $7.8 billion in assistance was earmarked for households and farmers affected by the unprecedented May-June floods. This was coupled by a subsequent announcement in August of $2.6 billion of financial support for vulnerable groups as well as one month of free electricity for over 40,000 households consuming 75 kilowatts per month.
Meanwhile, the Emergency Budget in 2020 provided for $7 billion in COVID-19 relief cash grants to households across Guyana and $1.1 billion in year-end bonuses to some 19,000 front-line workers in the health sector and the Disciplined Services.
Those measures were complimented by the reversal of taxes on a slew of utilities and items, as well as the removal of value-added tax on electricity, water, healthcare, education and even construction material. (G8)