Minister with Responsibility for Finance, Dr Ashni Singh yesterday announced that the government has granted a 6.5% increase across-the-board for public sector workers along with a one-month tax-free bonus for the Disciplined Services with civilian members of the GDF receiving the bonus for the first time.
The award was again made without any free collective bargaining with the public service unions.
Singh, in making the announcement yesterday, stated that the Government of Guyana continues to work to advance the country’s national development agenda and to improve the wellbeing of Guyanese.
He announced, “We will be paying in 2023 an across-the-board salary increase of 6.5% to all public servants, teachers, members of the Disciplined Services, constitutional office holders as well as government pensioners. This increase will be granted retroactively to the 1 January, 2023.”
Singh stressed, that the “consequential salary adjustment will benefit over 54,000 public servants, teachers, members of the Disciplined Services, and government pensioners and will place an additional $7.5b in disposable income annually in the hands of these employees.”
Further, the minister stressed that the government continues to recognize the dedication of the country’s men and women in uniform, as such members of the Disciplined Services will receive a one-month tax-free bonus. This initiative is expected to benefit some 12,000 members and will place an additional $1.5b of disposable income in their hands.
He also announced that for the first time the bonus will be paid to the civilian employees of the Guyana Defence Force (GDF).
The finance minister explained that, “Work will start immediately to ensure that all persons receive their salaries together with the retroactive amounts, and in the case of the Disciplined Services together with the one-month tax free bonus no later than the designated pay day in December.”
Singh further stressed that the government remains committed to ensuring that all categories of workers enjoy a continuously improving standard of living, improved opportunities and brighter prospect for the future.
According to him, since regaining office in August, 2020, the government implemented the payment of a 7% across-the-board increase in 2021 followed by an 8% increase in 2022 to public servants, teachers, nurses, members of the Disciplined Services and other employees in the public sector.
Additionally, he said, that his government restored the one-month tax-free yearend bonus paid to the Disciplined Services, and increased the income tax threshold from $65,000 monthly to $75,000 monthly in 2022, and then further to $85,000 in 2023.
He pointed out that recently President Irfaan Ali announced various upward adjustments in salaries to specific categories of teachers, health workers and members of the Disciplined Services.
Suite
“Our government has also implemented recently a suite of cost-of-living measures to be financed by the $5b allocated in budget 2023 to cushion the pressures of rising cost of living. These including, of course, a one-off $25,000 cash grant for all public servants, teachers, members of the Disciplined Services, staff of semi-autonomous agencies and public enterprises to be paid in December, 2023 and work is ongoing to effect those payments.”
Singh stressed that the measures highlighted in his announcement represent “only a selection of the measures of the much wider range of measures that we implemented since we resumed office aimed at improving the wellbeing of the working people of Guyana.”
Last month, President Ali announced a $25,000 one-off bonus for 67,000 public sector workers at a cost of $1.7b to be paid this month. This includes the public servants, disciplined services, teachers, nurses, sugar workers and employees of semi-autonomous agencies etc.
Old-age pensioners will also benefit from the one-off $25,000 bonus payable in December. This will benefit 72,000 pensioners at $1.8b.
Differently-abled persons on the public assistance register will get a $35,000 one-off bonus to be paid in December. This will benefit 19,000 persons at $660m.
Government will also allocate $850m for the purchase of fertilisers for farmers. This will benefit 287,000 acres of cultivation and 35,000 farmers.
