Rabain reveals details of public sector pay deal
Public sector workers have been given a pay increase of almost 5 per cent under an agreement reached with unions and the Government.
Separately, MPs and senators are expected to home bigger pay packets after an independent committee recommended a salary increase of 18.8 per cent.
Diallo Rabain, the Cabinet Office minister, announced the public sector workers pay rise in a statement to the House of Assembly today.
Negotiations between the Government and six unions representing employees began last November.
An agreement on the new pay deal was reached last month, just days ahead of the General Election.
Mr Rabain pointed out that the 4.81 per cent increase was to compensate for the fact that the sector had suffered multiple pay freezes and furloughs since 2012.
He argued that, as a result, the sector had struggled to recruit staff, resulting in 800 positions vacant.
Mr Rabain said: “These freezes effectively halted salary increases, preventing wages from keeping up with inflation and the rising cost of living.
“Collectively, these measures have created a complex and challenging environment for public service employees.
“The hiring freezes of the past have significantly impacted recruitment efforts in the public sector today.
“With the introduction of these freezes, the ability to attract and on-board new talent at the pace now required has been severely hampered.
“The service is facing challenges related to recruitment activities.
“The lack of new recruits means that existing employees must fill multiple roles, which can further strain resources and reduce overall efficiency.
“Records show that there are currently in excess of 800 vacant funded posts in the service.”
The 4.81 per cent increase will be backdated to April 2024.
Under the deal, public sector workers will also be guaranteed inflation-linked pay increases — estimated to be about 2.5 per cent — for the next three years.
Health insurance and pension fund contributions will increase marginally.
Mr Rabain said: “The uplifts to offset additional employee contributions to the Public Service Superannuation Fund and Government Employees Health Insurance are targeted to address funding shortfalls, aligning with actuarial recommendations, and will help to support the longer-term sustainability of our public pension funds.”
As he noted that the Government was the island’s largest employer, Mr Rabain said: “The decision to increase public officer salaries considers economic stability and social equity.
“Public officers play a crucial role in the functioning of the Government and the delivery of essential services.
“Ensuring their salaries keep pace with inflation is important for maintaining economic stability.
“Fair compensation helps sustain purchasing power, thereby fostering consumer spending and stimulating economic growth.
“By providing an increase, the Government aims to address the effects of rising prices on its employees, ensuring their standard of living is not eroded.
“This approach reduces income inequality and establishes the Public Service as an employer of choice.
“Competitive compensation packages are vital for attracting and retaining skilled public officers.
“Justifiable cost-of-living increases demonstrate the Government's recognition of its employees' efforts, resulting in enhanced performance and lower turnover rates.
“Sustaining a stable workforce benefits both the Government and the public we serve.”
Questioned by Opposition leader Jarion Richardson, David Burt, the Premier and Minister of Finance, said that the increase was covered by continuing revenue and would not require borrowing.
Increases for members of the legislature will see an MPs salary rise from $56,023 to $73,555 while senators will see their remuneration jump from $30,367 to $36,076.
Mr Burt delivered a statement explaining how the 18.8 per cent cost-of-living increase for legislators was calculated.
He said: “There has been no salary adjustment for members of the legislature in over 15 years.
“Additionally, ministers’ salaries were reduced by 10 per cent in 2013, and those reductions have remained in place.
“Over this period, the demands and complexities of public service have increased significantly.
“Officers of the legislature now operate in an era of heightened public scrutiny, faster decision-making cycles and increased responsibilities in a rapidly evolving governance landscape.”
Referring to a $7,000 base increase that all MPs will receive on top of the 18.8 per cent cost-of-living raise, Mr Burt said: “This additional increase was not initially supported by myself. However, in the interest of respecting the bipartisan consensus following the report’s discussion in the Standing Orders Committee of the previous legislature, the Government has accepted this recommendation.”
In addition, officers of the legislature — who earn additional income to their basic MP salary because they hold office — are in line to receive a 9.6 per cent increase on those additional earnings.
Officers of the legislature include the president and Vice-President of the Senate, the Deputy Speaker of the House, the Premier and Deputy Premier, Attorney-General, ministers, junior ministers, the Opposition leader and Opposition Whip.
Mr Burt said that the increases came to a total of $283,343 each year, which was more than the board’s recommendation but ensured “fairness across the board rather than large increases for a select few”.
He said: “Had salaries for officers of the legislature been increased in direct alignment with the wage adjustments received by public officers, as some have suggested, the financial impact would have been more significant.
“Instead, the resolution tabled today reflects a more measured approach, keeping the adjustments for officers well below those seen in the public sector while ensuring that remuneration remains fair and appropriate for the responsibilities of these positions.”
The resolution containing the new salaries has been tabled in the House of Assembly and will be debated next week.
• To read Diallo Rabain’s and David Burt’s statements in full, see Related Media
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