The Government and workers’ unions have come to an agreement on the terms of wage increases and tax adjustments.
At a press conference on Tuesday, September 20, President of the St Vincent and the Grenadines Teachers Union Oswald Robinson announced that there will be a wage increase over three years; an increase in the standard deduction for Personal Income Tax; and a reduction of the top marginal rate for Personal Income Tax.
The details are as follows:
1) A wage increase of seven percent (7%) over three years as follows:
(a) FY 2023 – 2.5%
(b) FY 2024 – 2.0%
(c) FY 2025 – 2.5%
2) An increase in the Personal Income Tax standard deduction to $22,000 [from $20,000]
3) A reduction of the top Personal Income Tax marginal rate to 28% [from 30%]