A 7% salary increase for our public servants is yet another slap in the face: APNU Guyana

Guyana: Guyana Govt has increased 7% salary increase for our public servants. People on this announcement are not satisfied, and hence other political parties demonstrated their viewpoints via a chain of thoughts on social media. APNU Guyana stated, "After two budgets totalling 712.6 Billion dollars and the projected receipts of almost US $80 million from our next oil lift, the PPP has determined that public servants deserve an across the board, taxable 7% salary increase."

"It has been established that Guyanese are currently facing a 14% increase in food prices, resulting in a significant reduction in their standard of living. In many homes, at least one income earner has lost their job over the last year, further reducing the spending capacity of families," APNU Guyana added.

APNU Guyana's further statement:

The President recently informed the nation that the situation would worsen over the next year and the PPP’s solution to this horrible economic climate is a 7% increase for Public Servants. They deserve better, and in comparison, they got better under the APNU+AFC administration.

Any reference to their one-off cash grants over the past months is no more than a weak attempt to justify this inadequate increase as the populace is well aware of the inequities associated with the distribution of those grants.

In comparison, consider the following - after just 18 months in office from July 1 2015, to January 1 2017, the APNU+AFC increased the minimum wage by over 50 percent, increased the income tax threshold by 20 percent, reduced the marginal income tax rate to 28 percent and removed the tax from employees' contribution to the National Insurance Scheme (NIS). In addition, old-age pension increased by 45 percent and public assistance by 27 percent. Further, the marginal income tax rate for non-commercial companies was reduced from 30 percent to 27.5percent. All of this, without receiving one dollar in oil revenues.

The APNU+AFC, while in Government, consistently ensured that senior public servants were awarded a lower percentage increase than junior public servants, thereby ensuring that the income gap would reduce over time. The PPP’s single rate across-the-board increase is intended to widen the gap between those who have much and those who have little. This step should not be a surprise as it has always been the PPP’s approach.