The A Partnership for National Unity + Alliance For Change (APNU+AFC) Coalition said the 7% salary increase being offered to public servants by the Irfaan Ali Administration is insignificant when one takes into consideration the steep rise in food prices and costs of living.
“It has been established that Guyanese are currently facing a 14% increase in food prices, resulting in a significant reduction in their standard of living. In many homes at least one income earner has lost their job over the last year further reducing the spending capacity of families. The President recently informed the nation that the situation will worsen over the next year and the PPP’s solution to this horrible economic climate is a 7% increase for public servants,” the coalition said in a statement.
The statement was issued on Thursday, hours after the Government announced an across the board increase for public servants to be paid retroactively. However, it will be taxed. The increase comes after two years.
“After two budgets totaling 712.6 Billion dollars and the projected receipts of almost US $80 million from our next oil lift, the PPP has determined that public servants deserve an across the board, taxable 7% salary increase,” APNU+AFC said as it registered its dissatisfaction.
Finance Minister, Dr. Ashni Singh, in making the announcement, had boosted of the menu of relief measures implemented by the Ali Administration since August 2020, however, the coalition said Government’s reference to its one-off cash grants over the past months is no more than a weak attempt to justify this inadequate increase. It said Guyanese are well aware of the inequities associated with the distribution of those grants.
The coalition said under its stewardship Guyanese within the public service received significant increased
“…. after just 18 months in office from July 1 2015 to January 1 2017, the APNU+AFC increased the minimum wage by over 50 percent, increased the income tax threshold by 20 percent, reduced the marginal income tax rate to 28 percent and removed the tax from employees’ contribution to the National Insurance Scheme (NIS). In addition, old-age pension increased by 45 percent and public assistance by 27 percent. Further the marginal rate of income tax for non-commercial companies was reduced from 30 percent to 27.5percent. All of this, without receiving one dollar in oil revenues,” the coalition detailed.
It said while in Government, it consistently ensured that senior public servants were awarded a lower percentage increase than junior public servants, thereby ensuring that the income gap would reduce overtime. “The PPP’s single rate across-the-board increase is intended to widen the gap between those who have much and those who have little. This should not be a surprise as it has always been the PPP’s approach,” APNU+AFC said.
