(CMC) – Guyana’s President Dr Irfaan Ali has announced that his administration will be adjusting the daily minimum wage and the income tax threshold.
Speaking during a press conference at State House in Georgetown on Saturday, the president said that following any analysis of the country’s finances, the minimum wage and tax threshold will be increased.
The government is in the process of re-evaluating the revenue projected for this year and based on the numbers, there will be a further adjustment.
“So I am also reviewing the capacity at further advancing liquidity in your pockets…the tax threshold. This is another issue that I would say is on the front burner of consideration. We’re analysing the numbers and ensuring that whatever we come up with is in keeping with the sustainability of our economy because that is what is important,” Ali told reporters.
In June 2022, the minimum wage of private sector employees increased from GUY$44,200 to $60,000.
In budget 2023, Finance Minister Dr Ashni Singh proposed that the income tax threshold move to $85,000, allowing thousands of workers to pay fewer taxes and take home more money each month.
Singh said that this move will mean that over 12,000 people will no longer pay income taxes.
Those are people who earn $85,000 and less.
What this also means is that individuals will only pay tax on the amounts earned after the first $85,000 is deducted.
The government has been actively addressing salary increase issues for various categories of public sector workers.
Last year, the government announced substantial salary increases, amounting to over $1 billion, benefiting 8,000 members of the disciplined services.
Furthermore, more than 5,000 healthcare workers received significant salary boosts, totalling $1.5 billion, with raises ranging from 36.4 percent to 74.7 percent.
These increments were implemented in addition to an eight percent across-the-board raise for all public servants, which were made retroactive to January 1, 2022.
The president has committed to addressing specific categories of public sector employees, with a particular focus on teachers, through a consultative process that not only considers salary adjustments but also housing and other needs.