2.5% wage top-up

The Government has agreed to an additional 2.5 percentage-point increase for some public-sector workers under the new compensation review system amid growing disquiet over the suggested repayment of allowances outlined in a Ministry of Finance circular.

The circular, which was released on Saturday, stirred emotions among civil servants, some of whom believed that they would have to repay allowances received between April and November following the signing of the wage negotiation agreement by 17 unions.

The agreement is effective as of April 1, 2022.

The Gleaner has learnt from a senior ministry official that the allowances are expected to be prorated, putting a lid on the expectations of some workers who may not have factored that consideration of the Christmas lump sum to be included in their December 20 salaries.

An emergency meeting between Minister of Finance Dr Nigel Clarke and the Jamaica Civil Service Association (JCSA) on Monday ended with the guaranteed 17.5 per cent being increased to 20 per cent on net total compensation.

However, the reason for the 2.5 per cent increase has not been made clear, nor has the impact on the national Budget been disclosed.

Also, it is not clear just how many workers will benefit from the new increase.

“Having sought clarification from the ministry, it was determined that the payroll processes to calculate the arrears would have caused some officers in receipt of some non-taxable allowances to become anxious about the methodology and its real impact on their retroactive amounts and monthly improved compensation.

“Having exhausted the discussions, the ministry has agreed to provide a further guarantee to the most affected civil servants, recognising that there was a need for review given the outcomes arising from the calculation of arrears,” JCSA President O’Neil Grant said in a brief statement issued after the meeting.

The Government in November formally increased the national Budget by $60 billion, or 6.6 per cent, in part to counter the shocks of inflation and fuel hikes largely caused by commodity disruptions in Eastern Europe.

Approximately $30.4 billion of that figure is to cover public-sector salaries under the new compensation system.

Grant had expressed concern in a statement on Sunday after Circular 24 was issued by the finance ministry indicating that all amounts paid for allowances that were discontinued would be recovered from April to November.

Grant indicated that this was never part of any agreement signed with the ministry and warned that this would cause “serious industrial unrest” in the public sector if not properly addressed.

He said travelling officers would have been most affected by the repayment.

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