Finance Minister announces salary increase to benefit over 54,000 public servants

-teachers, members of the Disciplined Services and Government Pensioners to be paid 6.5 percent increase retroactive to January 2023
-Disciplined Services to also receive one-month tax-free bonus with civilian employees of the GDF to receive bonus for the first time
Public Servants across the country, including Members of the Disciplined Services, teachers and Government pensioners will receive a 6.5 percent salary increase retroactive to January, 2023 in their December 2023 salaries. This announcement was on Friday made by Senior Finance Minister Dr. Ashni Singh. The Minister also announced a one-month tax-free bonus for members of the Disciplined Services with civilian members of the Guyana Defence Force (GDF) to receive this bonus for the first time.

Prior to the announcement, Dr. Singh joined His Excellency President Ali in the expression of deep and profound sadness at the loss of life of the five dedicated servicemen -Col. Michael Shahoud, Brigadier (Rtd.) Gary Beaton, Lt. Col. Michael Charles, Lt. Col. Sean Welcome and Sargeant Jason Khan. The dedicated servicemen perished tragically in the helicopter crash recently en route to Arau (Cuyuni/Mazaruni) on the western border. The Minister also extended deepest condolences to the families of the deceased servicemen as well as expressed gratitude and wishes for a speedy recovery to the surviving soldiers.

Dr. Singh, in reference to the challenges Guyana currently face as it grapples with the spurious claim to its Essequibo Region by the Government of the Bolivarian Republic of Venezuela, noted that Government, led by His Excellency President Irfaan Ali, continues to collaborate closely with the Caribbean and the international community in the use of diplomacy as its first line of defence.

He said further that, as has been indicated by President Ali and Vice-President Bharrat Jagdeo, Government’s work to advance the national development agenda and to realize the well-being of all Guyanese people will not be paused.

Since returning to office in August 2020, Government has implemented a multitude of measures to improve the lives of public servants and Guyanese at large, including:

1. The payment of a 7 percent across-the-board increase in 2021, followed by additional 8

percent in 2022.

2. The restoration of the one-month tax-free year-end bonuses to the disciplined services.

3. An increase in the income tax threshold from $65,000 to $75,000 monthly in 2022, then

further to $85,000 this year.

4. A 60 percent increase in the monthly old-age pension from $20,500 in 2020 to $33,000

this year.

5. An over 75 percent increase in public assistance payments from $9,000 monthly in 2020,

to $16,000 monthly this year.

6. Restoration of the cash grants to the parents of school-aged children, increasing the

amount provided for each child to $35,000 and extending the programme to children

attending private schools. Together with the $5,000 uniform grants, this amounts to

$40,000 per child.

7. An increase in the minimum wage for private sector employees by 36 percent to $60,147,

in keeping with the recommendations of the tripartite committee.

8. Salary adjustments for 5,000 health workers and almost 9,000 members of the disciplined services implemented to resolve anomalies across comparable positions in the public service.

In addition, His Excellency Dr. Mohamed Irfaan Ali last month announced adjustments to the salary and allowances of Graduate Teachers as follows:

1. All Graduate Teachers (i.e holders of a relevant Bachelor’s Degree from the University

of Guyana, a Degree awarding institution under the GOAL Programme, or a Degree certified by the National Accreditation Council) shall be moved to the maximum of the scale applicable to the post they currently occupy. This will benefit over 4,000 teachers at an additional annual cost of $1 billion, effective from 1 December 2023.

2. Teachers will receive an Education allowance of:

a. $10,000 monthly for holders of a Bachelor’s Degree

b. $20,000 monthly for a Master’s Degree

c. $30,000 monthly for a Doctorate Degree

This revision will benefit over 4,500 teachers. Any preexisting allowances paid in relation to the Post Graduate Diploma in Education (DipEd) will remain in place.

3. The Remote Areas Incentive will be adjusted upwards from its current level to $20,000 monthly, effective from 1 December, 2023, to the benefit of over 2,400 teachers.

4. All teachers who hold a substantive appointment as a Senior Master/Mistress/Head of Department or above and are within 3 years of retirement and have not previously received a Duty-free concession on a motor car, shall be entitled to 1 Duty free concession for 1 motor car up to 1500cc.

Government also announced a suite of cost-of-living measures to be financed by the $5 billion set aside in Budget 2023 to cushion the pressures of rising cost of living, including:

1. 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 payable in December 2023.

2. A one-off $25,000 cash grant for old-age pensioners payable in December 2023.

3. A one-off $35,000 cash grant for persons with disabilities receiving public assistance payable in December 2023;

4. An allocation of $850 million to support farmers through the purchase of fertiliser; and

5. An adjustment to the monthly earnings of Community Enhancements workers under the

Community Infrastructure Improvement Project (CIIP), upwards to $40,000, effective 1

December 2023.

Dr. Singh, during his remarks today, noted that the across-the-board increase will benefit over 54,000 Public Servants, Members of the Disciplined Services, teachers and Government pensioners, placing an additional $7.5 billion in disposable income annually in their hands. The bonuses for the Disciplined Services will benefit 12,000 members, and place an additional $1.5 billion annually of disposable income in their hands.

The Minister said work will commence immediately by Government to ensure that the salary increase and bonus announced are paid out on the designated pay day in December. It is important to highlight that this year’s salary increase brings the cumulative total of across-the-board increases to public servants to approximately 23 percent over the last three years.

President Ali has reaffirmed Government’s commitment to workers and has continuously noted that the focus is on a holistic plan of improving workers’ lives with salary increases being one aspect of the benefit that will be provided.