GPSU Demands Urgent 25% Wage Hike, Criticizes Government’s Inaction on Living Wage

Despite Guyana’s status as the world’s fastest-growing economy and one of the richest per capita due to its booming oil sector, public servants continue to receive wages that do not reflect this new economic reality. The People’s Progressive Party (PPP) government has faced growing criticism for failing to adjust salaries in line with the country’s rapid economic expansion. This disconnect has fueled concerns over inequality and fair distribution of national wealth.

In a pointed letter to the Minister of Finance, Dr. Ashni Singh, and copied to President Irfaan Ali, the Guyana Public Service Union (GPSU) has called for a 25% across-the-board wage increase in 2024 for all public sector workers, warning that current compensation levels are grossly inadequate in light of the country’s soaring cost of living.

In a statement dated September 12, 2025, GPSU underscores growing frustration with what it sees as insufficient government measures to cushion the economic blow faced by low-income workers.

“The adjustment is necessary to protect our members from a decline in their purchasing power and economic stability,” the GPSU stated, emphasising that the wage offer made by the government thus far is “inadequate.”

The union also proposed a 35% wage increase in 2026 and called for the development of a bilateral wage policy to guide salary increases over the next five years — with a particular focus on achieving a living wage for the lowest-paid workers.

While acknowledging past government interventions, including limited salary adjustments and financial relief measures, the union argued that these efforts have fallen short of closing the gap between actual wages and the minimum needed to meet basic needs such as food, housing, transportation, and healthcare.

“The Public Servants we represent have demonstrated unwavering commitment, often under challenging circumstances, to deliver essential services to our citizens,” the GPSU noted. “Their invaluable contributions… deserve to be recognised with fair and competitive compensation.”

The union has also raised alarm over the neglect of superannuation benefits, describing them as in urgent need of review. Additionally, it criticised recent national budgets for focusing heavily on capital works and infrastructure while “failing to allocate sufficient resources to human capital development.”

Citing their legal rights under the Labour Act, Chapter 98:01, the GPSU formally requested the start of wage negotiations and proposed that discussions begin immediately at a mutually agreed-upon location.

“We are exercising our right to negotiate for new terms and conditions of employment,” the Union wrote, calling on the government to act decisively to address the financial realities facing public servants.

As inflation continues to erode household incomes, particularly among lower-paid government employees, the GPSU’s call is expected to intensify pressure on the administration to prioritize salary reform in upcoming budgetary allocations.