Nearly $43 billion set aside for new rates, retro for public sector workers

The Government has allocated nearly $42.8 billion in the 2026-2027 Estimates of Expenditure as contingencies to cover new rates, retroactive salaries and adjustments in allowances that may result from public sector wage settlements during the fiscal year.

Unions representing public sector workers have been pressing the Government to return to the table to conclude wage talks, which started last year.

The negotiating groups are poles apart in terms of the offer made by the Government compared with the percentage increases the unions have requested.

In November 2025, the Ministry of Finance and the Public Service revised its offer on wage increases for the 2025-2028 contract period.

The Government tweaked its offer in year one from zero to two per cent, and for the following two years 2.5 per cent per annum.

However, the JCTU had rejected the offer, restating its position of 15 per cent in year one and 10 per cent in the second year.

Subsequent to those positions that have not changed, the negotiating parties have not held meaningful talks to hammer out an agreement.

SERIOUS TALKS

In presenting new revenue measures in Parliament on Thursday, Finance and the Public Service Minister Fayval Williams said the Government takes the wage talks seriously following the major wage restructuring under compensation review.

She said despite the massive destruction caused by Hurricane Melissa in late October, last year, totalling US$8.8 billion or 41 per cent of the country’s GDP, the administration remained committed to the wage offer it had made to public sector workers.

“That we are able to do that following Melissa is a testimony to the years of fiscal discipline pre-Melissa and the many years to come of good fiscal management,” Williams said.

On another wage-related matter, Williams said the Government gave a commitment to increase the income tax threshold to $1.9 million for fiscal year 2026-2027. She said the increase in the threshold will take effect on April 1, 2026.

As a result of the threshold moving from $1.7 million, persons earning over $1.9 million per year can look forward to taking home approximately $4,000 more per month.

Meanwhile, the Government has earmarked $3.2 billion in the estimates of expenditure for the payment for streetlights on behalf of the municipal corporations across the country.

The estimates of expenditure, which was tabled in Parliament on Thursday, also sets out payments in the sum of $1.4 billion for employer’s contribution arrears to the National Housing Trust.

Seven hundred and fifty million is also set aside by the Students’ Loan Bureau to pay down on STEM scholarships for students.

edmond.campbell@gleanerjm.com