Public servants for pay hikes around 9%
-hefty increases in allowances, minimum wage rises to $70,000
*Those earning between $100,000 and below $1m to get 8.5% hike
*Those earning less than $100,000 for 9% hike
*Minimum wage to rise from $64,220 to $70,000
*Those earning minimum wage to receive $69,336 bonus
*Hinterland allowance up between 100% to 600%
*risk allowance up by 900%
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