Public Sector Workers to Get 13 Per Cent Wage Increase and $500 Bonus

Public sector workers will start receiving a 13 per cent wage increase from next year, along with a one-time $500 bonus just in time for Christmas, Prime Minister Philip J. Pierre announced on Wednesday.

The wage increase, which follows the finalisation of negotiations with public sector unions, will apply from 2022 to 2028. Pierre revealed during his end-of-year press conference that tax-free back pay will be issued in February.

“I hoped that we would have completed negotiations early enough for all affected workers to receive their back pay for Christmas; however, we were not able to achieve that date,” he said. “I think that all public sector workers do deserve to receive some compensation for their patience and understanding. On my request, the Cabinet of Ministers has agreed to a payment of a one-off $500 bonus to every public sector worker. This means that 12,381 workers on the government’s monthly payroll will receive their bonus before Christmas.”

The announcements came as Pierre discussed the growing cost of living in Saint Lucia.

“It is painful to note the impact that imported inflation has had on families, especially single parents and the elderly,” he stated.

“Since 2021, we sought to cushion the impact of price increases on the people of Saint Lucia. We have increased the taxable allowance to $30,000 per year, which means that no Saint Lucian worker earning $2,500 or less per month pays any income tax.

“We have, for two years, made one-off payments to government pensioners. We have increased the NIC [National Insurance Corporation] pensions from a minimum of $300 to $500 monthly. The NIC has also increased its payment to their pensioners. No government pensioner now earns less than $750 monthly,” the prime minister pointed out.

Among the strategies highlighted by Pierre were the implementation of the minimum liveable wage of $1,131 per month; subsidies on flour, rice, and cooking gas; and the removal of the 6 per cent service charge on controlled goods.