GPSU 2024 Budget Proposal (Pt I)

The undermentioned represents Part 1 of the proposal the Guyana Public Service Union presented to the Government of Guyana for consideration in the 2024 National Budget:-

1. Public Service – Wages, Salaries, Allowances and De-bunching

(a)    Wages & Salaries

It is evident that the cost of living has increased astronomically and workers in Guyana are not paid a living wage. Workers are being paid a minimum wage which is by far less than a livable wage which is required to take care of basic family needs without reliance on remittance from friends and family. The Guyana Public Service Union (GPSU) for decades has been calling on the Government of Guyana to pay the Workers a living wage.

Additionally, the Union for decades has been representing that the disparity in the salary scales between GS 1 to 3 be addressed urgently and the necessary funds be made available to correct this disparity. Therefore the Union calls on the Government of Guyana to allocate adequate funds in the 2024 National Budget to undertake the rationalization of these salary grades retroactive to the year 2020.

Further, the Union insists that increases in remuneration should also take into consideration the inadequacy of wages, salaries and allowances. In comparing the remuneration of Guyanese Public Servants as against Public Servants throughout the Caricom States, there is grave disparity in pay, well to the disadvantage of the Guyanese Public Servants.

(b)   Allowances/De-bunching/Advances

Bunching exists within the Public Service. Employees regardless of their qualifications and years of service are receiving the same salaries and other benefits. The GPSU is representing this situation be corrected and funds be made available in the 2024 National Budget to allow in scale upward movement of Public Servants.

The GPSU also urges the reintroduction of payment of increments, together with incentives, to Public Sector Workers which will prevent a reoccurrence of bunching and maintain relativity within the salary scales.

Public employees continue to personally invest in self-development by obtaining tertiary education at universities in and out of Guyana. After attaining higher qualifications of BSc, MSc and PhD, which exceeds set requirements according to the job specification, merited recognition is not given to the employees for improved or higher qualifications.

The Union is supporting the payment of additional increments to workers with higher qualifications.

Despite this commendable effort and personal financial sacrifices, several of these employees are not compensated with in-scale increments. The Union is of the view that this issue should be addressed as an integral part of the de-bunching exercise and that adequate budgetary allocations be made available to cover this cost.

The Union is also renewing its call for provisions/allocations for substantial increases to provide realistic advances to Public Officers, who are eligible to procure loans to purchase motor, vehicles to be used in the discharge of their duties and substantial provision/allocation for increases in allowances. Also the Union is proposing that a Tripartite Committee be establish to determine the realistic rates of motor car advance and allowances.

2.    Public Sector Modernization Project

In this age of emerging technology where virtual engagements are becoming the norm, there is need for radical changes in our methodologies which necessitates new skillsets. Hence training and development are urgently needed in the Public Sector to build the necessary core competences.

The Union again reiterates its call that adequate funds be made available in the 2024 National Budget to complete the Public Sector Modernization Project with specific focus on the following areas:

(a).       Human Resource Development

(b).       Career Development

(c).       Technological Enhancement

3.       Tax Reform

The Union wishes to reiterate that comprehensive Tax Reform in Guyana is both needed and necessary. Government’s access to a major new source of revenue from the oil and gas industry, the high cost of living and inflationary trends necessitate this action. The Government of Guyana should review the level of taxation on both income and consumer items. These exercises should be undertaken with the involvement of stakeholders, which include, Trades Union Movement, Business Community and representatives of Non-Governmental Organizations in a process of meaningful consultations.

The Union re-submits the following proposals for consideration.

(i).       The increase of the income tax threshold to two hundred thousand dollars ($200,000.00) per month or one-third of the individual income, whichever is higher.

(ii).     The income tax rate be further reduced to 10% on the first taxable $200,000 and 20% on the balance of taxable income, instead of the current methodology of 28% and 40%.

(iii).   A non-taxable allowance of seventy five thousand dollars ($75,000.00) per month for dependents.

(iv).     A non-taxable allowance of one hundred thousand dollars ($100,000) per month for students, who are dependents and are pursuing tertiary level education (eg. University of Guyana, Guyana School of Agriculture, Guyana Technical Institute etc.)

v). A reduction of the Value Added Tax (VAT) to six percent (6%).

(vi).     Reduction of taxes on building supplies to assist low-income earners to build their own homes.

(vii).   Provision of low interest loans for Public Servants to acquire lands and to build their own homes.

These measures the Union believe would increase disposable income and reduce the burden on consumers due to increased cost of living.