The local private sector could consider raising its payments to workers following President Dr. Irfaan Ali’s announcement on Thursday that all public sector workers would earn no less than $100,000 monthly from 2025.
The President made this announcement on Thursday as he addressed the 12th Parliament of Guyana, at the Arthur Chung Conference Centre, Liliendaal, Georgetown.
Private sector representatives were among those who gathered at the conference centre for the President’s address. Some of those representatives shared their reactions to the bold interventions announced by the President soon after his address.
“While the public sector will go at a minimum of $100,000, yes, we can also see some movement in the private sector also. It will automatically force us to move our salaries and wages upward to meet those demands,” Chairman of the Private Sector Commission (PSC) Komal Singh told the News Room.
BREAKING: All public sector workers to earn no less than $100,000 by 2025
Singh was keen on pointing out two considerations, however. First, he explained that payments in the private sector are driven by supply and demand. So market forces are likely to impact what a person earns.
That occurrence leads to the second phenomenon. Because supply and demand influence payments and Guyana has been grappling with labour shortages, Singh said that wages and salaries in the private sector have already increased substantially.
Meanwhile, the President of the Georgetown Chamber of Commerce and Industry (GCCI) Kester Huston said raising the minimum wage is something that can be seriously considered with the right incentives.
“We’re hoping that we can match that.
“The private sector operates different from the public sector. We’re expecting to have some incentives in doing business as a private sector to really accommodate that,” he said.
As consideration is given to possibly raising the minimum wage in the private sector, Hutson said the President would be engaged on incentives that can be provided.
Currently, the minimum wage in the private sector is $60,000. It increased from $44,200 in July 2022.
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