EPOC Concerned Public Sector Wages Could Balloon Out of Control

Chairman of Economic Programme Oversight Committee, EPOC, Keith Duncan, is calling for a return to a set wage-to-gross domestic product, GDP, target to better manage the impact of public sector salaries on the country’s coffers.

Mr. Duncan is concerned that government wages and salaries will balloon out of control.

The country’s fiscal rules as negotiated with the International Monetary Fund, called for wages and salaries to be capped at nine-percent of GDP.

However, the country has on paper abandoned that cap, with the current ratio standing closer to 12 per cent. This translates to roughly 44 per cent of government’s annual revenues.

The country’s wage bill has nearly doubled as a result of the compensation restructuring exercise.

Mr. Duncan says if this is not brought under control, it will harm the country’s growth initiatives.