In a significant move fulfilling its key election commitment, the newly elected New Democratic Party (NDP) administration in St. Vincent and the Grenadines has announced the distribution of substantial tax-free bonus payments to public sector workers. Prime Minister Godwin Friday confirmed at a Friday press conference in Kingstown that the Treasury has been instructed to process these payments by January 30.
The comprehensive economic relief package, totaling approximately EC$22 million, will benefit an estimated 12,000 individuals across various employment categories. Contrary to initial expectations, the government has expanded eligibility to include daily-paid workers, part-time employees, and pensioners – groups that were not originally contemplated in the campaign promise.
Payment structure demonstrates a progressive approach with lower-income workers receiving proportionally greater benefits. Permanent and non-established public servants will each receive EC$2,000, while pensioners are allocated EC$1,500. Daily-paid workers earning between EC$500 and EC$1,000 monthly will receive EC$1,000 bonuses – effectively representing 100-200% of their regular monthly income.
Prime Minister Friday emphasized that this initiative directly addresses the “crushing cost-of-living pressures” exacerbated by the COVID-19 crisis. The administration characterizes the payout not as a government expense but as an economic stimulus measure that will put “money back in people’s pockets in a big way” to stimulate additional spending.
The Prime Minister acknowledged that while some critics, including Opposition Leader Ralph Gonsalves, have accused the NDP of voter deception regarding the bonus promise, his administration remains focused on delivering tangible support to the most vulnerable populations. Further measures addressing employment, training, and assistance for indigent persons are expected to be announced in the upcoming budget.