Total public sector wages now $210B, up from $126B in 2020 – Jagdeo

Vice President Dr. Bharrat Jagdeo on Thursday defended the PPP/C government’s salary increase for public servants, pushing back against what he said were unfounded criticisms by the political opposition.

At his weekly press conference, Jagdeo took time to outline the significance of the government’s 10% salary increase for public servants this year.

The Vice President offered detailed figures to support his position that significant progress was made in enhancing public sector wages since the People’s Progressive Party Civic (PPP/C) returned to power in 2020.

He revealed that in 2020, the central government wage bill was $71.8 billion, which has now surged to $121.4 billion with the recent 10% increase.

The overall public sector wage bill, which includes central government, public enterprises, and statutory bodies, has grown by a staggering 66% since 2020.

The total public sector wage bill for 2024 is $210.7 billion, up from $126.8 billion in 2020.

This translates to an additional $83.9 billion annually in the pockets of public sector employees, a recurring increase that Dr. Jagdeo described as unprecedented.

“What this means is that public servants are now getting $100 billion more per year than they were getting in 2020,” Dr. Jagdeo asserted,

The opposition APNU/AFC were quick to criticise the 10% increase. They labeled it a “pittance,” accusing the government of attempting to “buy votes” ahead of the 2025 elections.

Opposition Leader Aubrey Norton’s comments attracted a direct response from Jagdeo who pointed out what he perceived as the opposition’s tendency to mislead the public and misrepresent historical facts.

“The opposition had hoped to use deceit and falsehoods to mislead public servants and confront the government politically,” Jagdeo remarked.

He claimed that the opposition had a pattern of using industrial disputes for political gain, something they had attempted in previous years but failed to execute earlier this year with the industrial action by teachers.

Dr. Jagdeo also took aim at the opposition’s portrayal of their own record on public sector wage increases during their tenure from 2015 to 2020.

He juxtaposed their claims with the government’s achievements, noting that the public sector salary increases during the previous administration were far less generous.

For instance, from 2015 to 2019, employees earning an average salary of $200,000 saw a total increase of only 36% over five years. In contrast, the current administration, according to Jagdeo, is offering substantial annual increases.

The Vice President also responded to the claim that the government was treating the lower ranks of the public service unfairly, highlighting that wages at the bottom of the pay scale are now more competitive than in the private sector.

For example, entry-level positions in the banking sector now pay between $80,000 and $115,000, while the public sector’s minimum wage is set to exceed $100,000 with the latest raise.

Jagdeo argued that these figures made it clear that the government’s wage increases were both fair and substantial, especially when considering the broader economic growth of the country.