The Economic Programme Oversight Committee (EPOC) has proposed the reintroduction of the wages and salaries fiscal rule to cap wages and salaries as a percentage of Gross Domestic Product (GDP).

The comment comes amid ongoing wage talks with government and public sector workers.

According to outgoing Chairman of EPOC, Keith Duncan, wages and salaries accounted for 12.8% of the GDP this year.

He said this is an increase from the 9% in April last year.

Mr. Duncan said wages and salaries are already high and consuming some 45% of tax revenues and 40% of total revenues.

He said in this financial year, Jamaica’s public sector wages and salaries amounted to $414 billion and are projected to reach $445 billion next year.

Mr. Duncan said the growth in wages and salaries will continue to increase if efforts are not made to cap wages and salaries at a percentage of GDP.