With oil revenue stored in the Natural Resource Fund (NRF) totaling over $1,000,000 per Guyanese family, Guyana’s public servants look forward to a meaningful wage increase. Although this point often eludes the Peoples’ Progressive Party (PPP) regime, it is a fact that when deciding on salary adjustments inflation must always be taken into consideration.
As inflation continues to erode the value of their pay, we have reached a point where to cover the current inflation of 7.2%, recorded as of September 2022, Guyanese would require a minimum increase of 10.2% in taxable wages.
While inflation erodes the spending power of everyone’s wages, it also increases the revenue of the government. With prices for everything being higher the taxes paid on those items are also higher. As a result, the government has more than enough revenue to cover the required salary increases, if massive oil wealth was somehow not enough.
Any increase below 10% would not represent any net increase to public servants.
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