Public servants, including teachers, nurses and doctors, and members of the defence, police and security services, will receive permanent, tax-free increases in wages – 8.5% to 9% – and hefty allowances this year all of which will be retroactive to January 1st 2019, President David Granger announced during an address to the nation yesterday.
Further, persons previously earning the old minimum wage will receive a bonus of $69,336. All increases and bonuses are expected to be paid out next month. The minimum wage will rise from $64,200 to $70,000.
Those public servants earning over a million dollars a month will not see an increased salary.
The announcements yesterday by the President constituted the final public service wage increase by the APNU+AFC administration before the March 2, 2020 general elections and it had been expected that the caretaker government would announce a significant hike to solidify support from what is seen as key part of its constituency. It is unclear what the increase will cost.
Salary increases
During his address, the President said that public servants’ minimum wage will increase by 9 percent from the current $64,220 to $70,000. Sweepers/cleaners will also be receiving the new minimum wage.
Overall, the A Partnership for National Unity+Alliance for Change (APNU+AFC) coalition government has increased the minimum wage by 77 percent since taking office in 2015, when the wage stood at $39,540.
Meanwhile, public servants earning between $100,000 and under $1 million will receive an 8.5 percent increase, while those earning below $100,000 will receive a 9 percent increase in their salaries.
Finally, public servants earning $64,220 and below will receive an additional $69,336 in their December pay cheque. “Public servants earning a minimum of $69,336 will receive, in their December pay cheque $69,336, a sum in excess of their base salaries”, the President said in his address.
It is important to note that public servants who received the old minimum wage of $64,220 will benefit from both the 9 percent increase in the minimum wage, and the additional $69,336 in excess of their base salaries.
Allowances
In the case of allowances, station allowances for public servants receiving same will be increased by over 260 percent from $2,800 to $10,000, while hinterland allowances will be increased by between 100 percent and 600 percent, from between $4000 and $12,000 to $24,000, depending on the class of public servant.
Further, risk allowances will be increased by 900 percent from $500 to $5000, while the uniform allowance for health sector workers will be increased from $13,000 and $22,135 to $15,000 and $30,000.
Finally, the President also said that on-call allowances for doctors will also be increased, although he did not say by how much.
Increase arbitrary
While public servants may welcome these increases, they are arbitrary, and thus must be viewed against the backdrop of the dissatisfaction expressed by the Guyana Public Service Union (GPSU) for increases which occur in this manner.
Last Friday, Stabroek New reported that GPSU President, Patrick Yarde, had, during a press conference last Thursday, said that he is “fed up with arbitrary impositions,” while making reference to an announcement by Minister of Finance Winston Jordan, who announced the impending retroactive increases last Thursday.
Noting that the increases which have taken place since 2015 have been done without the GPSU’s input, Yarde told members of the media that the GPSU had been working together with the government to come to a consensus on the issue of salaries for public servants since May of this year, when it was invited to a meeting with President Granger.
The GPSU said it was asked to keep the meeting confidential until a decision was made, at which point a joint announcement could be made. He also shared that it was agreed that a joint committee would be set up to address wages and salaries.
A memorandum of agreement followed on June 14th, after which there was no development, he shared.
“After our exchange of a memorandum of agreement on the 14th of June, all we were being acquainted with was what was in the press,” Yarde said. “But we have concluded today that that approach seems to have been scrapped since you’re hearing that the minister arbitrarily will make an announcement on increases,” Yarde lamented, threatening that “We would wish to state that we will respond to any arbitrary increase in a most vigorous manner”.
In his address yesterday, however, Granger suggested that the announcement followed only after the union was engaged.
“Cabinet, at its statutory meeting on Tuesday 12th November, received a report from the Minister of Finance on the regular annual review of public servants allowances, salaries and wages. Cabinet as a result authorised a team, of government ministers, including Minister of the Public Service, Tabitha Sarabo-Halley, Minister of Social Protection Amna Ally, and Minister of State Dawn Hastings-Williams, to meet with a team from the Guyana Public Service Union, comprising President Patrick Yarde and Vice President Dawn Gardener to examine certain protocols”, Granger said.
The President did not share the outcome of the meeting in his address.
While public servants have gotten increases since 2015, sugar workers have had their wages frozen and 7,000 have lost their jobs.
