Belize: Govt moves public worker pay from 3% to 4% amid demands of 8.5% salary increase

Belize: A new increase of 1% to salaries of public workers has been announced to be implemented by October 2025, increasing the current salary from 3% to 4%. The government of Belize formally sent a letter to the unions today regarding the revised amount that will take effect from October. 

Stating that after the evaluation of the salary of the public officers by the Cabinet, a decision has been made to increase the salary by 1%.

Notably, the salary dispute between public sector workers and the Government of Belize is still dragging on, with no clear end in sight. At the heart of the standoff is an eight-and-a-half percent salary increase that public officers, teachers, and senior managers say they’ve been waiting on for too long. The government recently offered a three percent raise instead, but that proposal was quickly turned down following which the proposal of 4% salary increase has been made.

Although the change does not come without its hook which is the deal proposed will depend on the cost-saving measures, revenue-based reforms, and it will be a performance-based pay. Meaning, the pay raise changes will only be implemented and sustained if some financial and structural changes are carried through.

Changes such as lowering or cutting of all unnecessary expenses, introducing new taxes or improving the collection of taxes which will assist the government in collecting more taxes, and performance-based review meaning that only those who deliver strong results might be eligible for an increase in pay.

The proposed increase of 3% to 4% which includes a contributory pension scheme and raising the retirement age to 60 is said to take effect on October 1, 2025. The letter that was received by the joint unions today expressed that there will be a 4% increase in October followed by an increase in the beginning of the fiscal year 2026 or 2027, followed by another increase in the next 2 years.

The government continues to insist that increasing the salary from 3% to 4% is the balanced and fair way to increase the salaries of the public officers, instead of the initially requested amount of a full increase of 8.5%. The government warned that the 8.5% salary increase would have added up to 60 million USD to the annual wage bill.