President Ali reaffirms government commitment to workers

President Dr Mohamed Irfaan Ali has reaffirmed his government’s commitment to the rights and welfare of Guyanese workers during a labour brunch at State House in Georgetown on Sunday.

In his address, the president underscored the pivotal role and contribution of workers to Guyana’s development. He assured them of a leadership they can trust.

“We honour your hard work and we will do so not only by words. We will do so by actions, actions that we have proven in the last four years,” the president stated.

The president vowed to uphold and expand the PPP/C administration’s longstanding efforts to safeguard workers’ democratic rights, improve social conditions and boost economic empowerment.

Pointing to some of the government’s achievements since resuming office in August 2020, the head of state outlined a slew of measures intended to bolster workers’ income and overall quality of life.

These include a 46.2 per cent increase in public sector wages from 2021 to 2025.

Another noteworthy feat is the restoration of the one-month bonus for members of the disciplined services.

Income tax was also reduced from 28  and 40 per cent to 25 and 35 per cent, respectively.

Additionally, the income tax threshold was doubled from $65,000 in 2020 to $130,000, placing more than $18 billion annually in the pockets of more than 60,000 workers countrywide.

The government has doubled the ceiling on mortgage interest relief for housing loans from $15 million to $30 million to ensure more Guyana become homeowners. Tax relief for taxpayers who incur costs of life and medical insurance was also introduced.

For each child, one parent can now claim $10,000 monthly of their income as non-taxable.

Similarly, the first $50,000 monthly overtime income is now non-taxable, while the first $50,000 income earned monthly from a second job is non-taxable.

Beyond this, the government has made targeted adjustments to the wages and salaries of specific categories of workers, teachers, health care professionals and members of the discipline services.

Following the wave of economic development, similar interventions were made to increase education allowances to reward those who have obtained higher qualifications relevant to their jobs.

The president further highlighted his government’s progress in fostering a more robust industrial relations environment, noting that more than 100 collective labour agreements have been signed between employers and trade unions, more than at any other point in the country’s history.

In promising even more far-reaching reforms, the president unveiled a move to expand access to affordable housing.

“I have instructed the Minister of Finance to write to the New Building Society to increase their loan limit to $30 million with the guarantee that their interest rate on loans $30 million and below on housing will be five per cent maximum,” he stated.

He also announced plans to establish a special development agency, which focuses on facilitating concessional loans for small and medium-sized businesses (SMEs) and working families as part of a wider drive to boost entrepreneurship and productivity.

“We don’t want to just give you more subsidies and grants, we want to help you to earn more. We want to help you to build small businesses, we want to help you to build greater productivity,” President Ali said.

He further pledged investments in infrastructure, community safety, reliable electricity, and improved public services, as part of the government’s continued efforts to enhance quality of life across Guyana.