Pay review warns of ‘wealth destruction’ for civil servants

A comprehensive salary review commissioned by the Bahamian government has uncovered alarming disparities in public sector earnings, with middle managers and technical officers struggling to keep pace with rising living costs. The May 2025 Salary Review for Middle Management and Technical Officers, conducted by consulting firm DCB Holding Ltd for the Ministry of Finance, analyzed 85 priority roles across various public service departments, including senior administrators, law enforcement officers, customs and immigration personnel, and finance and audit staff. The report highlights a concerning trend of ‘wealth destruction,’ as inflation and stagnant wages erode employees’ purchasing power. Over the past few years, real earnings for public officers have declined by 5 to 16 percent, with top management staff losing up to 15 percent of their income. Police and Defence Force officers saw reductions of 5 to 14 percent, while customs, immigration, and correctional officers experienced the steepest declines of up to 16 percent. The study also revealed systemic issues within the government’s pay structure, including compressed salary ranges and ‘negative progression,’ where promotions yield minimal financial benefits. Nearly one in three police officers and 22 percent of executive personnel were found to be earning below the minimum threshold for their ranks. The consultants recommended aligning future pay reviews with key economic indicators such as GDP growth, inflation, and the Consumer Price Index to restore balance and safeguard workers’ purchasing power. Prime Minister Philip ‘Brave’ Davis has pledged to extend the review’s methodology to the broader public service, though the timeline for implementation remains unclear.