BASSETERRE, St. Kitts – PRIME Minister Dr. Terrance Drew has suggested that the 8 percent pay increase granted to public servants at the start of 2024 effectively amounts to a "double salary" over the course of the year.
The Prime Minister’s remarks come as discussions surrounding Christmas bonuses gain momentum across the island during the transition into the festive Christmas-Carnival season.
During the 2024 budget presentation last December, Dr. Drew announced the 8 percent salary adjustment, explaining that 3 percent would be allocated to a pension fund, while the remaining 5 percent would be added to employees’ salaries.
Speaking on WINN FM’s Inside the News program, Dr. Drew elaborated on the long-term benefits of the increase.
"If we are going to shift our people into the best situation, having that type of increase over time, increasing their salaries brings a lot more stability and it brings a lot more surety, so to speak. In the sense that when you calculate it, this gives them a double all the time," he explained.
The Prime Minister highlighted that salary increases have broader implications for financial empowerment and economic opportunities.
“Because you have that money as part of your normal remuneration, you can approach institutions and say, look, this is my salary amount. And having a larger salary gives you more possibilities. Not only that, when you get that, you have more possibilities of investments as well," Dr Drew said.
Dr. Drew also emphasized the long-term benefits tied to pensions and social security.
“And at the end of the day, when your pension or your social security is calculated, it is calculated at a higher rate. If you get a double salary, that does not go to your overall pension at the end of your life work. Right.,” he noted.
He added that higher salaries also result in increased benefits in cases of illness, as social security payments are calculated based on income levels.
