Pres. Ali promises salary hike for public servants as cost of living increases

Oct 30, 2021 News

Kaieteur News – Yesterday, during a virtual press conference, President Dr. Irfaan Ali reiterated that he is committed to providing salary increases for public servants.

The table illustrating the consumer price index over the years.

When questioned when he is going to meet with the Guyana Public Service Union (GPSU), the President said, “As I have said earlier, this year, we are committed to increases for the public servants and that commitment will be fulfilled before the end of the year.”
In August, the Head of State made the announcement that public servants will be receiving salary increases before the end of 2021. He had stated that the salary increase will be retroactive and was keen to note that it is not his Government’s vision for the discourse to be only about salary increases, rather, it is actively looking at mechanisms that would allow all public servants to live improved lives.
The renewed commitment comes on the heels of the recent Half-Year Report from the Bank of Guyana (BoG) noting that public sector minimum wage remains at $70,000, while consumer price continues to escalate.
“Public sector minimum wage remained at G$70,000 per month while the income tax threshold was unchanged at G$65,000 per month during the first half of 2021,” the report stated.
A table in the report illustrated the increases in the cost of food by 12.5 percent, miscellaneous goods and services by 1.9 percent, transport and communication by 1.8 percent, furniture by 1.7 percent and medical care by 0.3 percent.
It was stated in the report that the food category increased on account of higher prices of vegetables, fruits, pulses, oil and fats, and meat, fish and eggs by 54.6 percent, 33.0 percent, 11.3 percent, 8.3 percent, and 6.5 percent, respectively. Transport and communication prices increased on account of higher prices within the operational/ personal transport by 17.1 percent.
While, in contrast, price declines were registered in the categories of clothing, housing, education and footwear and repairs by 1.2 percent, 1.1 percent, 0.3 percent and 0.1 percent respectively.
According to the report, the inflation is measured by the change in the Urban Consumer Price Index (CPI), which hovered around low single digits during the first four months of the year.
The rate of inflation, more than doubled to 5.6 percent at end-June 2021, on account of sharp increases in food prices, particularly, vegetable and vegetable products, as a result of supply shortfall following the devastating floods in May and June.
Additionally, it was highlighted that higher oil prices also negatively impacted the transport and communication and miscellaneous goods and services sub-categories.