However, increments will continue to be frozen for two additional fiscal years

Effective July 1, 2022, the Government of Belize is slated to rescind the 10 per cent reduction in salaries and wages imposed on public officers and teachers in April 2021.

The restoration of the 10 per cent of public workers’ salaries that had been cut will result in an additional $60 million approximately in annual costs.

Prime Minister John Briceno, who made the announcement, pointed that while the government is in no way opposed to giving back the 10 per cent, the administration has to consider the global financial crisis facing developing countries.

Allowances that had been reduced will also be restored in full.

“On restoration of wages and salaries on July 1, 2022, the work week for public officers and teachers will also revert to the normal work week of 39.5 hours per week,” said Briceno.

However, increments will continue to be frozen for two additional fiscal years, as previously indicated, but this might change if the country is able to achieve an end-of-year primary surplus as a percentage of gross domestic product of no less than 3.5 per cent.

Matter of increments could be revisited

If this is achieved, the government has indicated it will revisit the matter of increments. Belize recorded economic growth of 6.5 per cent in 2021 amid significant fiscal consolidation.

Dean Flowers, president of the Public Service Union (PSU) in Belize, stated that the government has made a commitment to carry out a phased restoration of the full salaries of public workers. 

Flowers said that while government officials provided no details on a timeline for full restoration, they suggested that the 10 per cent may likely be reinstated in two or three stages. 

He explained that the Cabinet is to formulate a definitive decision on the stages of the restoration of the 10 per cent salary cuts and he expressed hopes that there would be no more than two adjustments.