Government to adjust minimum wage and income tax threshold.

GEORGETOWN, Guyana, CMC – President Dr. Irfaan Ali has announced that his administration will adjust the daily minimum wage and the income tax threshold.

Speaking during a press conference on Saturday, the president said that the minimum wage and tax threshold will be increased following any analysis of the country’s finances.

The government is re-evaluating the revenue projected for this year, and based on the numbers, there will be a further adjustment. President Dr. Irfaan Ali announced during a Saturday press conference at the State House in Georgetown.

“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 analyzing 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 (One Guyana dollar=US$0.004 cents) 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 monthly money.

Singh said this move will mean over 12,000 people will no longer pay income taxes. Those are people who earn 85,000 and less.

This also means 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, totaling $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 retroactively 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 considers salary adjustments, housing, and other needs.