Public Servants Face Extended Wait for Increment Arrears Until 2027

Public servants eagerly anticipating their overdue increment arrears by the new year 2024 have been met with disappointing news. Deputy Governor David D. Archer Jr. has revealed that the much-anticipated payments may now be deferred until 2027, as outlined in a circular disseminated to key government officials, including the Attorney General, Financial Secretary, Permanent Secretaries, Heads of Constitutionally Established Offices, Heads of Departments, and all Public Officers.

Archer conveyed, “As we close 2023, I am sharing an update on the status of payments of outstanding increments to public officers and salary progressions based on the new salary structure. On Wednesday, 1st December, Cabinet decided that all outstanding increment arrears for the Public Service are to be paid by 2027, subject to the availability of funding and barring any unforeseen circumstances.”

The Cabinet’s decision also encompasses the arrears for 2023 increments, which are slated to be paid by 2027, contingent upon funding availability and unforeseen circumstances.

Archer Jr. attributed this delay to the completion of the Compensation Review and Job Classification Project by PricewaterhouseCoopers (PWC) and the allocation of nearly £10 million in funding for the new salary scale, as announced in the 2024 Budget by Dr. Natalio D. Wheatley.

The protracted issue of increment delays has persistently plagued the VI public sector, with officers expressing discontent over deferred payments spanning various administrations.

In an official statement, Deputy Governor David Archer Jr. elaborated on the Cabinet’s decision, emphasising the need for funding availability and unforeseen circumstances considerations.

The completion of the Compensation Review and Job Classification Project prompted a swift response from the Office of the Deputy Governor, which engaged in a comprehensive consultation process with all public officers. The consultation sought to ensure that every public officer across ministries and groups had the opportunity to provide feedback on the proposed new salary structure.

His Excellency the Governor, John J Rankin CMG, acknowledged the challenging times faced by the Public Service, citing hurricanes and the impact of COVID-19. He underscored the importance of compensating public officers and endorsed recent decisions aimed at improving compensation. The commitment by the Premier to fund these initiatives was welcomed, with confidence expressed in the efficiency and excellence of the Public Service in implementing the decisions.

The circular detailed the consultation process on the new salary structure, including recommendations to Cabinet for an additional increment based on years of service. Despite not accepting this recommendation at present, Cabinet suggested alternative ways to reward long-serving public officers for exceptional performance, academic achievement, or promotion.

Premier and Minister of Finance Dr. Natalio D. Wheatley reiterated the government’s unwavering commitment to public officers and the public service. To ensure sustainable compensation, the government will implement a pay-for-performance scheme starting 1st January 2024, replacing the current incremental system.

The Cabinet also decided to review compensation for the Public Service every two or three years, executing salary increases based on affordability. Despite the cost to the government, this commitment underscores the determination to properly compensate public officers.

Recognising the need for transformation, plans are underway to move from a non-contributory to a contributory pension scheme, ensuring that public officers can access benefits regardless of retirement timing. Further engagement with public officers is promised to gather opinions and ideas on the evolving changes.

Public officers were encouraged to contact the Office of the Deputy Governor for any questions or concerns. Deputy Governor David Archer Jr. expressed sincere gratitude for the dedicated service and sacrifices of public officers, underscoring their vital role in building the future of the Virgin Islands.