A PARADOX OF PROSPERITY: The Urgent Case for Holistic Labour Reform in Guyana

Dec 22, 2025 Letters

Dear Editor,

As Guyana continues its ascent as a global economic titan, a profound and unsustainable anomaly has taken root within our domestic labor market. While the nation’s Gross Domestic Product (GDP) reaches unprecedented heights, a significant portion of the private sector workforce remains anchored to a fiscal reality that no longer exists. We must address the widening chasm between our national wealth and the daily survival of the Guyanese worker.

The Wage Disparity: A Divided Workforce

The current labor landscape has effectively split into two worlds. In the public sector, the government has recognized the necessity of adjustment, with the minimum wage set to reach $100,000 GYD by the end of 2025. Conversely, the private sector minimum wage remains tethered to the 2022 rate of $60,147 GYD. This 40% gap is not merely a statistical curiosity; it is a structural failure. It creates a “working poor” class where citizens performing essential services—security, retail, and manual labor—are legally compensated at rates that cover less than half of a basic livable budget.

The Cost-of-Living Crisis

The “Oil Boom” has brought with it an inevitable surge in the cost of basic necessities. As of late 2025:

Housing: A modest one-bedroom rental in suburban areas now averages $80,000–$110,000 GYD, instantly eclipsing the entire monthly minimum wage.
Nutrition: Food inflation continues to climb, with a basic grocery basket for a small family estimated at over $70,000 GYD monthly.
The Deficit: Current economic data suggests that an adult requires approximately $145,000 GYD per month to live with dignity. The current private-sector floor leaves a monthly deficit of nearly $85,000 GYD per worker.

Systemic Anomalies and Human Exploitation

Recent reports of security personnel receiving as little as $37,000 GYD for 15 days of 12-hour shifts highlight a disturbing trend of non-compliance. Mathematically, such payments equate to roughly $205 GYD per hour—a blatant violation of the legal $347/hr mandate. When businesses—particularly those benefiting from state-funded contracts—are permitted to bypass even the meager existing minimums, it signals a breakdown in regulatory oversight. This is not merely “poor practice”; it is the extraction of wealth from the most vulnerable to subsidise the margins of the affluent.

A Call for Holistic Action

We cannot allow a “slave wage” culture to fester under the banner of the world’s fastest-growing economy. The following actions are no longer optional:

Immediate Minimum Wage Harmonization: The private sector floor must be aligned with the $100,000 GYD public sector standard to reflect the current Consumer Price Index (CPI).
Rigorous Enforcement: The Ministry of Labour and Manpower Planning must move beyond reactive investigations and implement a proactive, sector-wide audit of security and service firms.
Livable Wage Legislation: We must transition our national conversation from “minimum” wages (survival) to “livable” wages (dignity).

Economic growth is hollow if it is built on the backs of a workforce that cannot afford to eat in the country they are building

Sincerely,
Hemdutt Kumar

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cost-of-living, Hemdutt Kumar, Human Exploitation, Letters, Wage Disparity

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