9% and 8.5% tax-free retroactive salary increase for public servants

─ retroactive to Jan. 1 2019

DPI, Guyana, Wednesday, November 13, 2019

The government today announced a major tax-free retroactive salary increase for 2019.

With the minimum wage climbing, public servants earning between $64,200 to $99,999 will, this year, see a 9% increase in their salaries.

His Excellency, President David Granger during his address to the nation on the massive increase in public servants’ wages.

Additionally, the increase will be retroactive from January 1, 2019.

This means that a person on the who earns a monthly salary of $64,200, will see them taking home $70,000 in December and it will be tax-free.

In addition, they will get more than a month’s salary, given that the 9% increase is retroactive for 12 months.

Making the announcement today, His Excellency President David Granger said public servants provide public goods which benefit everyone and every sector of the economy.

“The APNU+AFC Coalition is committed to creating a proficient, professional, highly-motivated and well-paid public service. Your government is committed to good governance and ensuring that all Guyanese can enjoy the good life,” the Head of State said in a public address.

At the same time, public sector workers currently within the $100,000 to 999,000 brackets will see an 8.5% increase in their salary while those earning above that amount will get a 3% increase.

The increases to salaries this year have taken a quantum leap from previous years. Last year, the scaled salary increases ranged from 7% for persons making under $100,000 to 0.5% for persons earning more than $1M.

In 2017, public servants earning between $55,555 to $99,999 were granted 8% increase, while those who fell between the $100,000 to $299,999 brackets were given 6%. Persons earning between $800,000 to $1M, were granted increases at half per cent.

The Head of State also announced some significant increases to varying allowances.

  • – Station Allowances will be increased by over 260% from $2,800 to $10,000;
  • – Hinterland allowances will be increased by between 100% and 600% from between $4,000 and $12,000 to $24,000;
  • – Risk allowance will be increased by 900% from $500 to $5,000;
  • – Uniform allowance for health sector workers will be increased from $13,000 and $22,135 to $15,000 and $30,000.

The president noted that increases in salaries and wages have positively impacted the performance of public servants themselves, their households and on the national economy as a whole.

“Public Servants have received annual increases in their wages and salaries consistently since 2015. Personal allowances have increased significantly, the income-tax rate was reduced and the tax on employee’s contribution to NIS was removed, over the last four years,” the Guyanese leader stated in his address to the nation.

H.E President David Granger’s full message can be viewed on the link provided. Here

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