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Private sector miniumum wage does not allow for employees to benefit from the proposed Income Tax Amendments 2025

Jan 22, 2025 Letters

Dear Editor,

With reference to the recent changes in the Income Tax conditions for employees within Guyana, which were highlighted in the Budget 2025, I would like to indicate an uncomfortable truth to the situation for certain private sector employees which are covered under the “Conditions of Employment for Certain Workers Act“.

With a gross minimum wage of $60,147 monthly, some private institutions, with whom I wish not to mention, are exploiting this mandate and only offer new employees the aforementioned amount as a starting salary for three months and after confirmation this salary would increase to $75,000 or $80,000. With the 6th day of work in the week (as set forth in the act mentioned above) the employee gains on average 32 hours overtime per month then their overtime amounts to $21,818 (80,000/176=454*1.5=681*32=21,818). Now their gross salary amounts to $101,818 of which NIS will be $5,701 so their Net will be $96,117.

The figures above now bring to question, what is the necessity for a higher ceiling when the capacity for earning, which lies solely in the basic salary of the employee, is too low to benefit from the measures implemented.

Of course, I understand that not all employers can allow their recruits to benefit from a salary of 130k gross, but now you have other benefits; the $50,000 OT allowance, the $10,000 per child allowance, that these employees will never have the advantage of benefiting from because their earning capacity is far too low. Where is the equity?  Why don’t we have more equitable salaries for both private and public sector employees? All votes garner the same significance, But, yet the minimum wage in the private sector is 40% less than the public sector (as mentioned by the Govt. “All public servants will be working for more than 100k gross per month at the end of 2025”).

I understand the public sector is above a certain standard and they would be able to benefit from the amendments but I wish public policy would cater more for the employees that are working around the clock, on shifts, employees that make wining and dining possible at night time, that keep casinos, hotels and cinemas operational and many other services that are provided through their employment. This has been a cry of the private sector for some time now, ever since the minimum wage was raised in 2021, a significance of the length of exploitation we have endured. I am imploring for a higher minimum wage for the private sector employees, so that even at a starting salary they can afford to be a little closer to the standard of living in Guyana.

Yours Truly,

J. Wong

(Private sector miniumum wage does not allow for employees to benefit from the proposed Income Tax Amendments 2025)

(Private sector miniumum wage)

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