69,000 public sector employees receive 10% increase, injecting $18B into Guyana’s economy

Following the conclusion of the historic Government of Guyana (GoG) and the Guyana Public Service Union (GPSU) multi-year agreement with respect to employment benefits for public servants for years 2024 to 2025, Senior Minister in the Office of the President with Responsibility for Finance and the Public Service, Dr. Ashni Singh affirmed today that 69,000 Public Sector employees including Members of the Disciplined Services and Government pensioners received their 10 percent across-the-board increase last week, placing $18 Billion in additional disposable income in their hands. Additionally, over 12,000 members of the Disciplined Services received their year-end One-Month Bonus today amounting to $1.8 billion.  The year-end bonus has been a consistent initiative of the People’s Progressive Party Civic (PPP/C) since its return to office in 2020 and prior.

It was only in October last and following the conclusion of the Government of Guyana and the Guyana’s Teacher’s Union (GTU) multi-year agreement on salaries and non-salaries benefits for teachers covering the period 2024 to 2026, that teachers were also paid a 10 percent salary increase placing over $2.5 billion of additional disposable income in the hands of our over 14,000 educators.

This year’s salary increase for public servants brings the cumulative total of across-the-board increases to 35 percent over the last four years.  Further, as agreed in the multi-year agreements, the GOG and GTU and GPSU an 8 percent salary increase to be paid to all public servants and teachers for 2025, which would amount to a 46 percent cumulative salary increase over the five years from 2021 to 2025.

The GOG / GPSU agreement also caters for “Debunching” of salaries within the public service with effect from July 1st, 2024 in order to recognize longevity of service, the introduction of qualification allowances for persons who would have furthered studies in an area relevant to official duties such as $15,000 for those who attained ACCA, $22,000 for persons with a Master’s Degree and $32,000 for those with a Doctorate, a $5,000 annual increase in uniform allowance for current eligible categories of health sector workers, an increase in traveling and subsistence allowances and a housing allowance of $35,000 monthly for public servants on secondment/transfer to hinterland locations. effective January 1st, 2025.

Meanwhile, similar successful agreements in 2024 between Government and other Unions have been inked marking a historical milestone for Government and its industrial relations with unions and workers. On December 11 last, The Guyana Sugar Corporation (GUYSUCO) on behalf of Government, and the Guyana Agricultural and General Workers Union (GAWU) also completed a three-year agreement that allows for significant wage/salary increases to the nation’s dedicated sugar workers, ensuring they receive the recognition and compensation they deserve. The terms of the agreement include an across-the-board pay rise of ten percent for 2024, an across-the-board pay rise of eight percent for 2025 and an across-the-board pay rise of nine percent for 2026.

In addition, the Government also successfully reached an agreement with the University of Guyana Senior Staff Association (UGSSA) and the University of Guyana Workers Union (UGWU) on December 10, for another historic three-year agreement that resulted in staff receiving a 10 percent salary increase for 2024, while an 8 percent increase will be paid in 2025, and a 9 percent increase in 2026.

In a recent interview with the press, Dr. Singh alluding to the increase, said that the salary boost reflects the PPP/C government’s commitment to improving the livelihoods of the nation’s workforce, adding that it does not include several other government initiatives aimed at enhancing the lives of citizens. Some of these initiatives include affordable housing, world class health care and major infrastructural development countrywide which benefits thousands of Guyanese, including public servants. He described the deal with the GPSU as “historic”, marking the first-ever multi-year agreement concluded by any government with the union in recent memory.

“I think it’s well-known that we have for a very long time tried to conclude multi-year agreements with the major unions representing public sector employees,” the Senior Minister said as he further highlighted the active ongoing engagements between President Mohamed Ali’s government and major trade union representatives countrywide. He also reiterated the government’s proactive stance in increasing the pay and benefits of public sector employees.

In addition to the major agreements signed for 2024, Government has continued to show its commitment to the well-being of the members of the Disciplined Services continuing the trend since its last term in office and upon its return in 2020 of granting them a one-month year-end bonus. The bonus was again this year announced by President Ali amounting to $1.8 billion for the benefit of over 12,000 members of the Disciplined Services.

“This is a demonstration of our commitment again to improving your welfare,” President Ali emphasised as he explained to the Servicemen that, “The job of a soldier is not defined. The job of a soldier requires agility. It requires continuous training. It requires discipline, commitment, fitness.

“It requires a life that is very much different…a life that is selfless, one that is completely dedicated to the protection and the safeguard of our country and our people.”

The President also used the opportunity of the Christmas luncheon at Base Camp Seweyo where he made the announcement on Saturday last, to recognise the officers for their hard work and dedication to serve the nation.

Dr. Singh thanked staff of the finance department who worked tirelessly and diligently to ensure that the increases were paid out in time for the Christmas season to eligible persons.

Since returning to office in August 2020, Government has implemented a multitude of measures to improve the lives of public servants and Guyanese at large, including:

1. The payment of a 7 percent across-the-board increase in 2021, followed by 8 percent in 2022 and an additional 6.5 percent last year, cumulating to a 23 percent salary increase over the period.
2. The restoration of the one-month tax-free year-end bonus to the disciplined services, placing over $6 billion in the hands of the members of the disciplined over the period 2020 to 2024.
3. An increase in the income tax threshold from $65,000 to $75,000 monthly in 2022, to $85,000 monthly in 2023, then further to $100,000 monthly at the beginning of this year, placing over $9 billion of additional disposable income in the hands of our workers.
4. A 75.6 percent increase in the monthly old-age pension from $20,500 monthly in 2020 to $36,000 monthly this year.
5. A more than doubling of the public assistance payments from $9,000 monthly in 2020, to $19,000 monthly this year.
6. Restoration of the cash grants to the parents of school-aged children, increasing the amount provided for each child to $40,000 and extending the programme to children attending private schools. Together with the $5,000 uniform grants, this amounts to $45,000 per child and aggregates to an over $26 billion injection into the homes of school children over the period 2021 to 2024.
7. A 36 percent increase in the minimum wage for private sector employees to $60,147, in keeping with the recommendations of the tripartite committee.
8. Salary adjustments for 5,000 health workers and almost 9,000 members of the disciplined services implemented to resolve anomalies across comparable positions in the public service, placing an additional $3 billion into their hands.

In addition, in 2023, prior to the 2024 agreement with the GTU, adjustments were made to the salary and allowances of Graduate Teachers.

This President Ali-led Government remains dedicated to supporting workers and has consistently emphasized a comprehensive approach to enhancing their quality of life, with salary increases being just one component of the broader benefits envisioned.