The finance ministry has sought to assure that the government will not be recovering allowances already paid, under the new public sector compensation review system.

In a statement on Thursday, Finance Minister Dr. Nigel Clarke said the government has never planned to recover and will not be recovering, the allowances.

Dr. Clarke pointed out that the restructured public sector compensation system represents a new compensation structure for the public sector.

He said it is not simply an increase on existing rates nor is it an update of the existing system.

Dr. Clarke added that the system is a new concept on how public sector employees are compensated with a guaranteed minimum increase in net compensation.

The new compensation system seeks to provide a single salary payment to an employee that represents a basic salary and certain allowances. 

He said the construct of the single salary payment has taken into account all such allowances that are being discontinued.

The minister said statutory deductions paid and recorded for each employee for the fiscal year 2022/2023 will need to be in line with computations under the new system.

However, given the government’s guarantee of a minimum increase in net compensation, there won’t be any requirements for employees to make any repayments of allowances already received.

He said the gross compensation under the new system has accounted for the statutory deductions that will be due, and for the minimum net compensation increase guaranteed by the government for all public sector employees.