Government’s coffers cannot support more than 5% wage increase – President


[] – Addressing the outcry against the proposed five percent wage hike for public servants, the Head of State explained that while he would wish to offer a higher increase, consideration must be given to their capacity to do so.

Cabinet Secretary Dr. Roger Luncheon was last week questioned about the size of the impending wage increase and in his response he pretty much gave an assurance of five percent.

When asked whether more could be given, the President reminded of the many constraints facing the government’s coffers.

“If our budget has been cut by $32 billion for the year…if important developmental projects are cut like the Amaila Falls which would have been like 25 percent of our GDP, look at the impact that would have had on our economy and the circulation of money within society, the generation of wealth it would have caused,” the President during an interview on Wednesday, November 27.

But while there is a huge outcry for a bigger increase, the President also reminded that if it is five percent, the increase will be real, as will be above the half year inflation rate.

Over the past number of years, the government has been issuing an across the board five percent increase for public servants.

This became the norm, since the public service ministry and the workers’ unions have been failing to come to any finite agreement in time for the workers to enjoy an end of year payout.



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