Minister Singh: Public servants can choose between pension and gratuity

Guyanese public workers have the freedom to choose a gratuity or a lump-sum payment upon retirement, unlike under the previous administration.

Senior Minister in the Office of the President with Responsibility for Finance and Public Service Dr Ashni Singh said the government trusts Guyanese to make decisions that best suit their needs.

“We don’t presume to know the liquidity preferences of any individual citizens. We make that choice available to public servants,” Dr Singh stated during Monday’s sitting of the National Assembly at the Arthur Chung Conference Centre.

He made these remarks while responding to questions from Opposition Member of Parliament (MP) Tabitha Sarabo-Halley regarding contracted public servants.

The senior minister disclosed that 8,173 individuals were employed on contract as of December 2024.

MP Sarabo-Halley further questioned the economic feasibility of gratuity versus a post-retirement lump sum payment. However, Dr Singh maintained that this decision rests with the individual public servant.

Generally, public servants on contract are eligible to receive gratuity upon the completion of their contract, which is subject to satisfactory service. This gratuity is usually calculated as a percentage of their basic salary.

Equally, public servants in pensionable establishments are eligible for a pension, which may include a lump-sum gratuity component upon retirement. This is dependent on a qualifying period in a pensionable office within the public service.

The senior minister criticised the previous government for largely imposing pensionable establishment on the hardworking public servants.

“That instantly meant that these persons lost their 22.5 per cent gratuity. They suffered a cut in their emoluments…That 22.5 per cent was lost by the heavy-handed approach taken by the APNU+AFC to say ‘You must go onto pensionable establishment’,” he said.

Dr Singh stated that this amounts to almost a quarter of the workers’ emoluments and aggrieved citizens to such a degree.

Due to this approach by the previous administration, the current administration ensured it restored the right of the people to return to contract status so that they could receive their gratuity.

“The APNU+AFC have no concept of respecting the wishes of the people as is reflected in their electoral behaviour. We on the other hand in the People’s Progressive Party/Civic will always respect the wishes of the people of Guyana,” Dr Singh said. (DPI)