By Saskia Warrick
February 17, 2025
Public sector employees have the option to choose between receiving a pension or gratuity upon retirement, a policy reaffirmed by Minister of Finance and Public Service, Dr. Ashni Singh, during a session of the National Assembly earlier today.
The issue was raised by Opposition Member of Parliament Tabitha Sarabo-Halley, who expressed concerns about the long-term financial sustainability of gratuity and the high number of contract workers in the public sector.
She suggested that this employment structure could lead to instability.
In response, Dr. Singh disclosed that, as of the end of 2024, there were 8,173 contract employees in the public sector.
However, he stressed that workers are not obligated to choose one option over the other and are instead given the freedom to decide what best suits their post-retirement financial plans.
The finance minister also referenced the previous administration’s policy of transitioning contract workers into pensionable positions.
According to him, this shift resulted in financial setbacks for many employees, as salary adjustments led to lower take-home pay.
Additionally, Dr. Singh pointed to substantial wage increases implemented over the past four years, which have contributed to making public service jobs more attractive.
He noted that this has led to an increasing number of private-sector teachers moving into the public system, drawn by improved salaries and benefits.