Tax free wages increase for public servants

Finance Minster Winston Jordan on Friday announced that wage increases approved for public servants for the year 2018, which is retroactive to January 1, 2018, will be taxfree. This is according to the Income Tax Act (Special Provisions) Regulations. The official gazette provides for a waiver of taxes on the ‘retroactive percentage increase in salary for public servants and public officers in the employ of the government’. The announcement came after the government would have approved the wages increase on Monday. According to a circular from the Ministry of Finance, dated November 19, 2018, persons working up to $100,000 per month would receive an increase of seven percent. Those earning between $100,000 and $299,000 per month would receive 6.5 perent; 5 percent for those working for between $300,000 and $499,000 per month. Persons working from $500,000 range and above $1M will be given an increase ranging from 3 percent to 0.5 percent. The circular made it clear that teachers, Ministers, Members of Parliament and the University of Guyana will not be included on this increase. Besides the Disciplined Services, it applies to all traditional public servants. That is those employed in Ministries, departments not under ministerial control, regional administrators and public service related agencies, commission secretariats and those who are engaged on contract positions reflected on the inventory of authorized positions of the traditional public services and persons on contract outside on the inventoried positions.

(Kaieteur News Online)