Public workers are free to choose gratuity or pension – Dr. Singh reminds

Finance Minister Dr. Ashni Singh, who also holds the position of Minister of Public Service, has reaffirmed the PPP/C government’s commitment to giving public sector workers the freedom to decide whether they want gratuity or a post-retirement pension.

Responding to a question in the National Assembly on Monday from former Public Service Minister and opposition parliamentarian, Tabitha Sarabo-Halley, Dr. Singh clarified the government’s stance on the matter.

He explained that, unlike the previous APNU+AFC administration, the PPP/C government will not impose a decision on public sector employees regarding their post-retirement benefits.

As of the end of 2024, there are 8,173 individuals employed on contract in the public sector, Dr. Singh told the House.

And while the details of constitutional commissions are not made public, all other agencies are included in this count.

Sarabo-Halley in a follow up question raised concerns about the potential financial implications of allowing workers to choose between gratuity and pension, suggesting that gratuity might be less economically feasible compared to a pension.

Dr. Singh, in turn, rebutted the suggestion, explaining that the PPP/C government believes in the ability of citizens to make decisions on their own behalf.

“We don’t presume to know the liquidity preferences of any individual citizen. Some people may be happy to forego gratuity… and opt for a post-retirement pension, while others may prefer the 22.5% gratuity and forgo the pension,” he stated.

The minister made it clear that the government would not restrict workers’ choices.

“If someone wishes to go on pensionable service, we will not prevent that. Likewise, if an individual opts for gratuity and not a pension, they are free to make that choice,” he said.

Dr. Singh further pointed out that during the five-year period of the APNU+AFC government, there were efforts to phase out contract employees, with many individuals being forced to surrender their contracts in exchange for pensionable positions.

According to the Minister, this decision caused significant financial loss for workers, as they faced cuts in their emoluments due to the “heavy-handed” approach of the former government.

“The PPP/C government is committed to restoring the rights of citizens… We promised in our manifesto to give people the freedom to choose between contract work and pensionable service, and we are now making good on that promise,” Dr. Singh added.

Dr. Singh also spoke to the improvements in wages and salaries for all public workers, noting that there are no stark differences between the payments given to workers on contract and those on the pensionable establishment.

“We are now able in central government to attract employees from the private sector into government”, because of wage increases in the last four years, Dr. Singh added.

To make his point, he pointed to teachers leaving private schools to work in public schools.