Government announces 6.5% salary increase for public servants

Government announces 6.5% salary increase for public servants

The Government has announced a 6.5% retroactive salary increase for all public servants, teachers and members of the Disciplined Services and persons employed at semi-autonomous Government agencies. Additionally, Government pensioners will receive a 6.5% increase in their pension payments.

The announcement was made this afternoon by Minister responsible for Finance, Dr. Ashni Singh, who said that over 54,000 public servants will benefit from the increase.

“We will be paying in 2023 an across-the board salary increases 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 from the 1st of January 2023,” the finance minister said.

The increase granted by the government is the lowest since it took office in 2020.

In 2021, the Government granted a 7% increase to public servants, and last year, an 8% increase was given.

The Finance Minister did not provide a rational for the 6.5% increase, but said an additional $7 Billion in disposal income has now been placed in the hands of public servants.

He also announced that members of the Disciplined Services will receive a tax free one month bonus in addition to the retroactive increase. Civilian members of the GDF will also receive the one month tax free bonus.

“In particular, we recognized the continued dedication of our men and women in unform. As such, I also wish to announce that we will pay a one month tax free bonus to all members of the discipline services, which will benefit 12,000 members of the uniform services and will place an additional $1.5B of disposable income in their hands,” the Finance Minister said.

Minister Singh said work will start immediately to ensure that all persons are paid on the December 15 due date for salaries, adding that the government has recognized the hard work that public servants continue to deliver to the people.

President Ali recently announced a one-off $25,000 cost of living bonus for all public servants.

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