6.5% retroactive salary increase for public servants; tax-free bonus for the disciplined services
Finance Minister Dr. Ashni Singh on Friday announced an across-the-board increase of 6.5 per cent for public servants, teachers, members of the disciplined services, constitutional officeholders, as well as government pensioners.
This increase will be granted retroactively from January 01, 2023
According to Dr. Singh, this salary adjustment will benefit some 54, 000 public servants and will put $7.9 billion in disposal income into the economy annually.
The Finance Minister, in his televised address, announced also a one-month tax-free bonus for all members of the disciplined services.
In this instance, some 12, 000 uniformed members of the joint services will benefit and for the first time, the bonus will be paid to civilian members of the Guyana Defence Force (GDF).
“Work will start immediately to ensure they get the restorative amounts no later than the designated payday in December,” Dr. Singh said.
In 2021 the government offered a seven per cent salary increase to public servants and then in 2022 it increased to eight per cent.
The Irfaan Ali – led government had also restored the one-month tax-free bonus paid to the disciplined services.
The income tax threshold also moved from $65, 000 in 2021 to $85, 000 in 2023 with further announcements expected in 2024 national budget.
The increases announced on Friday are in addition to recent salary adjustments for teachers, healthcare workers and members of the disciplined services by President Dr. Irfaan Ali.
The new support measures and increases in November amounted to over $7 billion.
Among these were salary increases and allowances for graduate teachers; a $25,000 one-off bonus for all public sector workers, including those at semi-autonomous agencies and public enterprises; a $25,000 one-off bonus for old-age pensioners; and a $35,000 one-off bonus for persons living with disabilities.
Additionally, Dr. Ali announced an $850 million fertiliser support package for farmers and that Community Enhancement Workers will now get $40,000 monthly.
It complements a one-off 25, 000 cash grant for all public servants announced by President Ali last month and is to be paid in December 2023.
