PM announces tax-free, retroactive pay increase

Loud applause filled the Victoria Park on Sunday, as public servants were informed that they would receive a 1.5 per cent pay increase this week.{{more}}

The smiles and applause increased when the public servants and their families were further informed by Prime Minister Ralph Gonsalves, that this increase will be paid retroactively from January 1, 2011, and would be tax free.

Gonsalves, who made the announcement while delivering his Independence address, said the payment would cost the government

over nine million dollars, and another one million to absorb the tax concession.

“I feel sure that all the public servants, teachers, nurses, police officers and the other relevant categories of public employees, including the daily paid, will appreciate the especial effort of our Government in delivering on this solemn promise.”

The payment to public servants was made on Wednesday, while all daily paid workers should receive their money by today, Friday.

Speaking in the House of Assembly this week, the Prime Minister reminded the members of the House that public servants had received the first half of the promised three per cent pay raise in December last year.

“This is a commitment which I have been given since 2008 when we agreed for an increase in 2009, 2010 and 2011. At the beginning of 2011 when the three per cent could not have been paid because we were increasing the safety net for the poor and I gave my word that it would be paid.”(JJ)