THIS IS WHAT THE 8% INCREASE FOR PUBLIC SERVANTS REALLY MEAN

servants should look President Jagdeo’s gift-horses in the month. Since, a wage increase of 8% for 2011 means that more than half of that is already lost, at the projected rate of inflation of 4.4% given in the National Budget 2011.

Of the remaining 3.6%, well over half, could be paid out in:

ü  The 16% VAT plus

ü  The 331/3% Income Tax plus

ü  The National Insurance Contribution (Social Security taxes/NIS).

Therefore, depending on the earnings of the particular worker, the net increase is less than 2%.

THE MONTHLY BENEFITS FOR THE PRESIDENT

At the same time, according to the calculations of APNU, the value of the monthly pension payment and perks for the President will top G$3.8 million dollars, if we correctly add to the current estimate in circulation the tax-expenditure benefit (value) to the President of the tax-free status of his salary and perks.

THE MINIMUM WAGE

Just as shockingly, over the period of the much discussed rebased GDP series (2006-2010) the average annual rate of growth has been 4%. Yet, as the GPSU have pointed out, the minimum wage for this period has increased by 27.4% while the cumulative inflation rate was 32%.

A Partnership For National Unity

Secretariat

121 Regent Road, Bourda

Georgetown, Guyana.

Friday 4 November 2011