Saint Lucia Budget Highlights: Govt increases pensions, minimum liveable wages

Saint Lucia: Prime Minister Philip J Pierre has designed a comprehensive Budget for 2024-25 that will enrich the standard of living of ordinary Saint Lucians, provide increased support for vulnerable groups, and accelerate national development. The 3rd Budget address was given by him on Thursday under the theme ‘Building Our Infrastructure For A Resilient Economy.” In this budget address, the Prime Minister increased the pensions for government employees and the minimum liveable wage. According to the information, effective from August 1, 2024, the minimum pension payable to government pensioners will be increased to $725. At present, there are government pensioners who earn $300 per month. While announcing the development, PM Pierre noted, “Government pension payments in the future will be linked to union-agreed negotiated salary increases for civil servants, but not beyond the covered period of these negotiated settlements.” He further said that at the request of governments, the National Insurance Corporation, in consultation with the actuaries, has also decided to increase its minimum pension to $500 per month from the existing 300. “About 2400 pensioners will benefit from this increase. Effective August 1, 2024,” he said. Talking about the minimum livable wage, PM Philip J Pierre said that it is the government’s responsibility to keep improving the wages and conditions of the workers of this country. This is why in 2022, the administration appointed a Minimum and Equal Wages Commission, comprising representatives of the trade unions, private sector and government, he noted. PM Pierre was pleased to report that this Commission has completed its preliminary report and the way forward will be in compliance with the provision of the Labor Act cap 16.04. “the Commission shall proceed to prepare the draft order containing a recommended minimum wage for publication in the Gazette and to present its recommendations to the representatives of employees and employers as prescribed by the Labor Act,” he outlined. He added that the Saint Lucian workers will have a new minimum liveable wage by August 1, 2024, and an official announcement will be made on the matter. In addition to this, to achieve sustainable economic growth and wealth creation for the citizens of Saint Lucia, the government will pursue some key policies, including the new Macro Investment Bill, Continuation of Tax Amnesty, Enactment of Minimum Wage, and several others.

The other highlights of the 2024/25 Budget Address in Saint Lucia are as follows:

Enact the New Macro Investment Bill to fast-track approval of large investments in all sectors that meet certain social, economic, and environmental criteria.
Provide special incentives to businesses and property owners in the city to renovate and refurbish their properties to facilitate Urban Renewal.
Create two Project Implementation Units to increase the implementation rate of infrastructure projects.
Proposed new Minimum Liveable Wage enacted by August 1, 2024
A one-off payment of $2500 will be made to each of the 93 privately registered Early Childhood Centres to assist with the purchase of educational supplies. This payment will be made from August 1, 2024
Banana farmers recently affected by the shortage of boxes and packaging material will be entitled to a shared compensation package of $500,000
Public servants will be entitled to 100% residential mortgages under the new credit line facility being managed by the Saint Lucia Development Bank. In addition, the government will assist every successful applicant with a $1000 payment towards their legal cost
Encourage the construction of new residential homes and renovations to existing homes; stamp duty on mortgages up to $400,000 taken for any of the two purposes will be waived
Received the approval from CARICOM for the derogation of the Import duty on hybrid and electric vehicles, which will continue to be 5 percent until November 20, 2025
Continuation of Tax Amnesty: waiver of interest and penalties on outstanding taxes up to May 1, 2025. Waiver of residential land and house tax has also been extended to May 1, 2025
Work with interested parties during this fiscal year with a view to introducing the Sandbox regime and innovation hub legislation to create the enabling environment for new technologically driven businesses
Creation of a Sovereign Wealth Fund (to create a multigenerational plan that would safeguard future generations)

Saint Lucia Budget Highlights: Govt increases pensions, minimum liveable wages

The other highlights of the 2024/25 Budget Address in Saint Lucia are as follows:

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