Last Updated on Monday, 26 November 2018, 18:35 by Denis Chabrol
Finance Minister, Winston Jordan says government employees earning a minimum salary of GYD$60,000 would take home GYD$50,400 in back pay, even as he confirmed tax free back-pay for all categories of government employees.
Those increases would not include teachers who have already been granted increases following protracted negotiations with the Guyana Teachers Union (GTU). However, teachers’ back-pay would not be taxed also.
He confirmed that government employees, including members of the disciplined services, who earn GYD$100,000 and less would receive a 7 percent increase; 6.5 percent to those earning GYD$110,000 to below GYD$300,000; 5 percent for employees earning GYD$300,000 to below GYD$500,000; three percent for earnings GYD$500 to below GYD$700,000; two percent for earnings from GYD$700,000 to below GYD$800,000; one hose earning between $800,000 to below $1,000,000; and and 0.5 percent to those earning $1,000,000 and above.
Jordan said the retroactive salary increases would be tax free.
Further, he announced that the income tax threshold would be GYD$780,000 (GYD$65,000 per month) or one-third, whichever is greater, with effect from year of income 2019. He said, “this represents a 30 percent increase in the threshold, since the Coalition Government came to office in 2015, and would see approximately $805 million being returned to taxpayers.”
Meanwhile, he said Old Age Pension would be increased from GYD$19,500 to GYD$20,500 and Public Assistance from $8,000 to $9,000. He says that brings to 55 percent and 53 percent, respectively, the increases granted to these two categories since the Government came to office. Both increases, which take effect from January 1, 2019, will see persons taking home an additional GYD$800 million, in 2019.