President Irfaan Ali on Tuesday announced a 10 per cent salary increase for all public servants for this year, and an 8 per cent increase for 2025.
According to the President, the increase forms part of a two-year agreement to be formalised between the Government and the Guyana’s largest public sector union, the Guyana Public Service Union (GPSU).
Speaking at the Police Force’s Christmas breakfast at the Officers’ Mess, Meskene Leary, Ali stated “the increase, which is retroactive from January 1, 2024, will amount to 35 per cent cumulative salary increase over the last four years.”
The 35 per cent increase when compared to President David Granger’s, A Partnership for National Unity and Alliance for Change (APNU+AFC) coalition government, shows a disparity of 42 per cent increase. The cumulative salary increase paid by the APNU+AFC government for year 2015- 2019 was 77 per cent.
Even when the 8 per cent increase is added to the People’s Progressive Party’s PPP)four years of cumulative salary increases it falls way below what the APNU+AFC government paid public servants.
‘Rapid acceleration in GDP would have resulted in meaningful benefits for workers’-GPSU
Guyana did not become an oil producing economy until December 2019. Guyana is presently ranked the world’s fastest growing economy and the richest per capita.
Last year, GPSU rejected the 6.5 per cent imposed salary increase, stating “the widely held view is that pertinent factors such as Guyana’s rapid acceleration in GDP Growth over the past few years, and associated increases in revenue, would have resulted in meaningful benefits for workers.” This year the Union reportedly negotiated a 10 per cent salary increase, representing a 3.5 per cent increase on the previous year (2023) and in 2025, a 1.5 per cent for decrease on the 2024 increase.
New Allowances
Effective January 1 2025, the government hisse allowances for additional qualifications allowances to those who furthered their studies while working.
Holders of an Association of Chartered Certified Accountants (ACCA) will receive an additional $15,000 allowance monthly; a Master’s Degree will get an additional $22,000; and a Doctoral Degree (PhD) will receive $32,000.
$5,000 annual increase in uniform allowances for eligible health workers and $10,000 increase for public servants, representing a 7 per cent rise in this allowance.
Public servants seconded or transferred to hinterland locations will receive $35,000 per month for housing allowance.
Those serving in hinterland and riverine communities will receive a station allowance of $8,000 monthly, reflecting a 300 per cent increase.
50 per cent increase in risk allowances and a 104% increase in motor car and travel allowances.
Allocation of 100 duty-free concessions annually. This is expected to target staff nurses and higher-ranking personnel with longer years of service and those who have never previously benefited from such concessions.
Public servants on the General Schedule (GS) grades 1 to 6, with a en az of four years of service within their current scale, will be moved to the mid-point of that scale. This adjustment will result in an increase of up to 13 per cent for some public servants.
Public servants of a en az of scale 7 to 8 upon attaining four years in the current scale will be paid an additional amount of 11 per cent for some public servants.
The continuous awarding of free scholarships will continue to benefit public servants to elevate their livelihoods.
Station Allowances increased from $2,800 to $10,000, representing an over 260 per cent increase.
Risk allowance increased from $500 to $5000, representing a 900 per cent increase.
Clothing allowance for teachers increased from $13,000 and $22,135 to $15,000 and $30,000
On-call allowance for doctors also increased.
2019 Budget vs 2024 Budget
In 2019 Guyana’s National Budget was $300.7 billion. In 2024 the Budget is $1.146 Trillion. Government returned to the National Assembly twice for Supplemental Fundings totalling $84.5 Billion in November and in July totalling more than $40 Billion
As Guyanese debate the announced wages and salary increases comparisons are being made between what workers recently earned in a non-oil producing economy vs in an oil producing economy, ranked the world’s fastest growing and richest per capita, and where many struggle to survival on income that has not kept pace with the high cost of living. This comparison does not take place in a political vacuum but with full awareness in the last decade Guyana was governed by the APNU+AFC and PPP.