Opposition calls 6.5% pay increase ‘ridiculous’

The Opposition is not at all impressed with announced pay increase for public servants pointing out that it is below the current inflation rate and as such cannot relieve the high cost of living.

A release yesterday from the Office of the Leader of the Opposition referred to the 6.5 per cent increase in the 2023 pay for public servants announced by Finance Minister Dr Ashni Singh on Friday as “ridiculous”, adding that it should shame any government with a “modicum of decency and sensibility.”

It pointed out however, that the PPP/C seemed immune from any such emphatic sentiment. “But not the PPP/C. They see political gain and virtue in keeping workers and citizens poor and dependent.” The release noted that the “pitiful” 6.5 per cent is so small, that it represents less than one per cent of the government’s current budget of $782 billion. 

And “to add insult to injury,” the release noted that the members of the Disciplined Services will only receive a token one-off bonus, this despite the “escalating threat” to Guyana’s territorial integrity and sovereignty. “This is the extent to which the PPP values the protection of our homeland and the welfare of Guyanese.”

Calling it “shameful,” the release stated that this increase is below this year’s rate of inflation and inadequate to help citizens handle the already high and escalating cost of living. Subjectively and objectively, it said, public servants are worse off now than they were under the APNU+AFC Coalition government. Further, citizens are less capable of making ends meet as they can buy less food, fewer goods, and save less. They are also less confident and more hopeless and have less money to spend on Christmas.

And although this year, Guyana’s national budget and economy stand at nearly triple the 2019 level, many Guyanese keep asking, where is the oil money going, as it certainly isn’t reaching ordinary citizens. Many have already concluded that if the PPP/C can’t give public servants a substantial salary increase now, it never will.

 The Opposition said that the coalition government gave public servants a 77 per cent pay increase Guyanese without the benefit of oil revenues oil revenues, and in only a few years. It promised, that if elected, all Guyanese workers and households will receive a living wage as part of guaranteeing all households a livable income. Guyana, it said, cannot lift the quality of life of citizens if its public servants have to flee its shores for respect and betterment. “We cannot educate our children, keep our streets safe, deliver quality healthcare to our citizens, and service economic activity without a motivated and well-compensated public service.”

As such, the Opposition assured that the next Coalition government will ensure public servants share in the benefits of Guyana’s economic growth and oil wealth. “Our nation’s natural endowment belongs to all citizens. We will make Guyana one of the best countries for workers and public servants to live in,” the release added.

The award by the government was again made without any free collective bargaining with the public service unions.

Singh, in making the announcement on Friday, stated that the Government of Guyana continues to work to advance the country’s national development agenda and to improve the wellbeing of Guyanese.

He announced, “We will be paying in 2023 an across-the-board salary increase of 6.5% to all public servants, teachers, members of the Disciplined Services, constitutional office holders as well as government pensioners. This increase will be granted retroactively to the 1 January, 2023.”

Singh stressed, that the “consequential salary adjustment will benefit over 54,000 public servants, teachers, members of the Disciplined Services, and government pensioners and will place an additional $7.5b in disposable income annually in the hands of these employees.”

Further, the minister stressed that the government continues to recognize the dedication of the country’s men and women in uniform, as such members of the Disciplined Services will receive a one-month tax-free bonus. This initiative is expected to benefit some 12,000 members and will place an additional $1.5b of disposable income in their hands.

He also announced that for the first time the bonus will be paid to the civilian employees of the Guyana Defence Force (GDF).

The finance minister explained that, “Work will start immediately to ensure that all persons receive their salaries together with the retroactive amounts, and in the case of the Disciplined Services together with the one-month tax free bonus no later than the designated pay day in December.”