Public servants wage increase to be tax-free, retroactive
Wage increases approved for public servants for the year 2018 will be retroactive to January 1, 2018, and tax-free.
This is according to regulations gazetted by Finance Minister, Winston Jordan on Friday under the Income Tax Act.
Cited as 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 Ministry of Finance approved 7% salary increases for persons working up to $100,000 per month, 6.5% for those working between $100,000 and $299,000 per month and 5% for those working for between $300,000 and $499,000 per month.
Persons working from $500,000 and above $1M will be given increases ranging from 3% to 0.5%.
The increases do not include teachers as a separate circular has been issued to address their wages in keeping with a Memorandum of Understanding (MoU) between the Ministry of Education and the Guyana Teachers Union (GTU).
Also not included are Ministers and Members of Parliament and the University of Guyana, which recently announced its wage increases of 3% and 4% for staff.