Gov’t, unions reach deal to resume payments

The announcement, made jointly on Thursday, follows a high-level meeting between the two sides on Wednesday, April 29. A formal circular outlining implementation details is scheduled for release on Monday, May 4.

The suspension of increments was first imposed under Circular No. 20, dated November 18, 2022, which froze incremental movements from April 1, 2022, to March 31, 2025. That freeze coincided with the rollout of the government’s new compensation structure, a sweeping reform of public sector pay grades and classifications.

With that reform officially completed on March 31, 2025, the ministry confirmed that conditions are now “in place to facilitate the resumption of increments.”

Accordingly, annual performance increments — including seniority allowances where applicable — will recommence in the current 2026/2027 financial year.

“This development reflects the continued engagement and advocacy of the JCTU, as well as the ministry’s commitment to advancing matters affecting public sector employees,” the joint statement read.

The agreement was welcomed by union representatives, who have long argued that the freeze placed an undue burden on workers, particularly those at lower salary bands who had reached the top of their scales and relied on increments for any meaningful wage progression.

While the resumption of increments is a major step, broader contract negotiations remain ongoing. The ministry and the JCTU are still at the table for the contract period spanning April 1, 2025, to March 31, 2028.

“Several items have already been agreed,” the statement noted, adding that both parties remain committed to concluding discussions as soon as possible. Outstanding matters from the compensation restructuring exercise are still being resolved, though no specific details were provided.

Permanent Secretary in the Ministry of Finance, Marlon Christie, described the agreement as “a tangible and positive outcome” for employees, while JCTU President St. Patrick Michael Nicholson called it “proof that collective bargaining works when there is good faith on both sides.”

The ministry and the unions concluded their statement by reaffirming “their shared commitment to improving terms and conditions of service” and acknowledged the ongoing contributions of public sector workers to national development.

For teachers, nurses, police officers, and other government employees who have waited more than four years since the last full increment cycle, the news offers at least some measure of relief — though attention will now turn to how quickly the payments can be processed and whether the agreement will be applied retroactively.

The circular due on Monday is expected to answer those questions.