Another $13B injected into economy

See full statement from Ministry of Finance:

More than 54,000 public servants, teachers, members of the disciplined services, and government pensioners have received their 2023 salary increase representing payment of the 6.5 percent retroactive salary increase announced by Senior Finance Minister Dr. Ashni Singh on December 10. This increase was received by public servants and Government pensioners. Dr. Singh thanked staff of the Ministry of Finance and Finance Departments of the various Government agencies who worked tirelessly and diligently to ensure that the increases were paid out in time for the Christmas Season to eligible persons, together with the retroactive amounts. The Ministry also ensured that the 12,000 members of the Disciplined Services along with Civilian employees of the Guyana Defence Force (GDF) (for the first time) received the one-month tax-free bonus. In addition to the 6.5 percent salary increase received, as part of a $5 Billion cost of living allocation, Government also paid out a 25,000 one-off tax-free cash-grant to public sector employees, a one-off $35,000 cash grant to persons with disabilities receiving public assistance while old aged pensioners also benefitted from the $25,000 one off cash grant. These amounts have placed a total of over $13 Billion in the hands of all of the above categories of persons.         

Minister Singh highlighted the importance of persons receiving these payments before Christmas, which will stimulate economic activity across the country. 

“…an injection of this nature has tremendous positive multiplier effects in the economy because it generates the consumption that it stimulates at the household level, then feeds into the retail trade and that then feeds into the wholesale trade and that then feeds into production,” Dr. Singh explained. 

Moreover, members of the Disciplined Services and health workers received salary adjustments in January 2023 reflective of announcements made by President Ali on November 24 and December 12, 2022 respectively. With regard to health sector workers, the salary adjustment to the tune of $1.5 Billion benefitted over 5,000 health care professionals while an estimated 8000 members of the Disciplined Services benefitted from their salary adjustments which increases their disposable incomes by over $1 Billion annually.  

For 2023, Government also announced salary adjustments and other emoluments for teachers as follows: 

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:
3. $10,000 monthly for holders of a Bachelor’s Degree
4. $20,000 monthly for a Master’s Degree
5. $30,000 monthly for a Doctorate Degree

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

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.

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.

Dr. Singh has noted that other than salary increases Government’s approach to improving the lives of Guyanese involves improvements and upgrades to essential services under the numerous policies and plans the administration has been administering.

Some of the measures include the reviving of the ‘Because We Care’ cash grant for school children, pensioners’ water subsidy, removal of taxes on various commodities as well as the resumption of the one-month tax-free bonus for the Disciplined Services.

“When you speak about disposable income you have to speak first of all about adjustment to salaries…We have also adjusted upwards a number of specific categories of public sector employees. Some as high as 50, 60 and 70 per cent. We have recently announced the cash grant of $25,000 to every single public servant,” Minister Singh had pointed out.

The implementation of these measures including Government’s housing initiatives has, no doubt altogether enhanced the lives of Guyanese all across the country including public servants who are among the nearly 30,000 individuals who have benefitted. In addition to this, public servants have also benefitted from the reduced interest rates at various commercial banks to assist persons in constructing their homes at affordable costs.    

“We take a holistic and comprehensive view of well-being. We look at the things everybody wants. They want to earn a better income of course. And so, our aspiration is to make sure that people are able to earn a better income over time. But people also want other things, other aspects of well-being. Like being able to live in a community that has decent roads, being able to access good quality healthcare, having your elderly parents be able to access a decent pension,” Dr. Singh explained further. 

President Ali has continued to reiterate that his Government’s focus is on a holistic plan of improving workers’ lives with salary increases being one aspect of the benefit that will be provided. 

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