Durrant Pate/Contributor

The Government has set aside $495.8 billion in the upcoming budget for increased public sector pay, which is now being negotiated.

Finance and the Public Service Minister, Fayval Williams, who made the disclosure during her maiden budget debate presentation in parliament on Tuesday, said this amount includes new rates of pay for medical consultants, dental surgeons, parish court judges and probation/aftercare officers. 

It also includes back pay for medical consultants and parish court judges, an allocation to support the employment of agricultural wardens, and $1.0 billion to support continuation of the Jamaica National Service Corps.

This is in addition to a compensation contingency provision of $33.0 billion to meet the cost of public sector wage settlements including a provision of $3.0 billion to support filling vacant technical positions in regional health authorities.

Update on wage negotiations

On the issue of the current rounds of wage negotiations, the Ministry of Finance and the Public Service has thus far received 11 claims to include Jamaica Civil Service Association (JCSA), Jamaica Confederation of Trade Unions (JCTU), Jamaica Teachers Association (JTA), Police Officers’ Association (POA) and groups within the health sector. 

The government has commenced discussions with the unions/associations for the new contract period and has continued engaging with stakeholders, which is key to maintaining harmony in the public sector. Williams referenced public debate on whether or not Jamaica has a cap on public sector wages in relation to Gross Domestic Product (GDP). 

Up to April 2023, Jamaica had a rule to cap public sector wages and 33 salaries at no more than nine per cent GDP each year. The cap was implemented in 2013 while Jamaica was in an International Monetary Fund (IMF) program, but since 2022, the incumbent administration abolished the Wage to GDP cap in order to address retention issues, wage freezes and historical underpayment in the public sector. 

Minister Williams sought to dissuade Jamaicans from believing that there are no controls on the budget noting that the major controls are the Fiscal Balance Rule and the Debt Ratio.

“I believe every Jamaican should know by now that the Debt/GDP ratio is being targeted to be 60% or less by FY2027/28 and that by the time we close this FY2024/25, we expect to be at 68.7%. The Fiscal Balance Rule is also a strong guardrail for the financial affairs of this country,” the Williams told the parliament.