THE PPP\C administration has granted a 10 per cent salary increase to all public sector employees retroactive from January 1, 2024. This will be augmented by a further increase of eight per cent across the board increase for 2025.
The increases were made with the full involvement and participation of unions representing public sector employees, which is a significant advance from the standpoint of industrial relations, especially as they relate to the principle of collective labour agreements, a fundamental principle in the relationship between employees through their representative unions and their employers, in this case the Government of Guyana.

These are significant injections of money into the pockets of public servants. According to Vice-President, Dr Bharrat Jagdeo, what is being paid out is not a pittance. It is a large sum of money and represents a serious effort on the part of the government to address public servants and their wages.
According to Dr Jagdeo, Guyana’s Public Service has over 70,000 workers who are employed within central government, public enterprises and statutory bodies.

This is unquestionably a significant segment of the total workforce and will certainly result in higher levels of disposable income, especially at this festive time of the year. The increases come on the heels of the current cash grant of $100,000 to all Guyanese citizens 18 years and over, inclusive of overseas-based Guyanese citizens.

One significant development consequent to the increases in public-sector wages is the continuing disparity between public sector and private sector wages, especially at the minimum level of the salary scales.
Unlike in previous years, public sector wages are today much more competitive when compared to that of the private sector. This obviously will pose a challenge to the private sector as it seeks to attract workers from the limited pool of skilled and semi-skilled workers.
What is even more commendable is the fact that despite the magnitude of money injected into the pockets of Guyanese and by extension in the national economy, the inflation rate remains largely stable which in essence means that real wages are being increased, resulting in a significantly bigger basket of goods and services for Guyanese consumers.

This is in sharp contrast to what transpired under the previous PNC administration, when real wages lagged substantially behind money wages which were quickly devoured by the ‘monster’ of inflation.
Contrary to what the political opposition is seeking to convey, the cash payments and increases in public-sector wages by the PPP/C administration are by no means an “electioneering gimmick,” but represent a genuine effort by the government to enhance the standard of living of the Guyanese people.
As noted by President, Dr Mohamed Irfaan Ali, the increases are in keeping with a commitment by the PPP/C administration to incentivise education and training and the development of the country’s human capital.
“As you can see from this announcement, this government’s commitment to every category of our people is unquestionable, but we have surpassed in every single instance,” President Ali noted.

The PPP/C administration must be given credit for significantly increasing the purchasing power of the Guyanese people, while at the same time keeping inflation in check. This is a testimony to sound economic and fiscal management, for which the administration must be commended.