GRAND CAYMAN, Cayman Islands – Government has approved a bespoke budget for Fiscal Year 2016-17 to address pay stagnation within the Civil Service. The programme will be rolled out in phases.

This will allow the Civil Service to address the internal pay inequities that have crept into the system as a result of prolonged austerity policies that froze pay for existing staff, even where those employees earned additional qualifications and proved themselves to be excellent employees.

“I take great comfort in knowing that our Civil Service has a proven track record for meeting challenges head on, and delivering favourable results on behalf of the Country,” said Premier Hon. Alden McLaughlin.

When faced with the call to “do more with less”, the Civil Service has responded. Headcount within the Civil Service has gradually declined, and as a result of numerous austerity measures aimed at reducing personnel costs, each year human resources costs have come in below the approved budget, thus contributing millions of dollars toward the Government’s achievement of annual budgetary surpluses.

Government recognises these achievements and the sacrifices that have made them possible. While keeping a steady control of expenses, Government has endeavoured to reward good stewardship. In June 2014, the Government awarded a one off 2.5 per cent honorarium to the Civil Service. This was followed in July 2015, by the Government awarding a 4 per cent cost of living adjustment to all civil servants.

In 2013-2014, the Immigration Department undertook a process of job evaluations, which resulted in pay increases for Immigration Officers. In the current financial year 2014-2015, other uniformed positions have also been evaluated. As a result of favourable job evaluations, Customs Officers have received pay increases and similar increases are currently being made to Police Officers.

Notwithstanding such efforts civil servants’ pay has been controlled by strict policies for many years, often times to the detriment of the most loyal and hardworking staff. As at 30 June, 2015, approximately 35 per cent of the Civil Service have suffered pay stagnation where they have not seen any increase in their pay points for seven or more years. This number increases to almost 50 per cent of the Civil Service who have experienced pay stagnation for five or more years.

The result that highly experienced employees may now be earning less than persons who are newly hired to the same roles. In such cases, new employees have been able to negotiate higher salaries; meanwhile, the pay for long serving staff has been frozen. This has resulted in sometimes pronounced disparities been existing staff and new hires.

“I’m happy to say that steps are finally being taken to address these issues as well. The Government has commenced a phased approach to this problem. Starting in the current financial year, teachers will be the first to see pay increases to remedy pay stagnation,” said Mr. McLaughlin.

Teachers whose pay has not increased for three or more years and who have received favourable performance evaluations, will receive between one to three increments based upon how long their salaries have been frozen.

“While Government wishes it could do more to reward its staff, it is important to recognise that programmes have been deployed in a consistent, sensible and sustainable manner. We cannot fix everything in this term. In the coming financial year, we will continue to support the Civil Service while still holding it accountable to achieve favourable results on behalf of the people of the Cayman Islands,” Mr. McLaughlin said. “The Government has taken a responsible approach to restoring the fiscal health of the country and it has shared the fruits of this success with those who have helped to make it possible.”