Treasury told to fund pay rise

CABINET has directed the Treasury Department to provide funds for the public sector pay awards involving the 3 per cent annual increase from 2017 to 2019 for the 120,000 public servants.
Public Service Minister Elias Kapavore, pictured, said the delay in the payment of the awards was due to the Government’s cash flow restrictions in the past two years.
He said the ministry had earlier assured the Teaching Service Commission and the PNG Teachers’ Association that every effort was being made to secure sufficient funding to pay the 3 per cent salary adjustment.
“By this time next year, the 2018 award rates with the back pay will have been fully implemented,” he said.
“In order to manage the cash flow, the 120,000 public employees will be paid through Government payrolls in three groups.
“Group One is teachers.
“Group Two is officers of the disciplined services, law and justice sector and revenue raising agencies.
“Group Three includes health workers, remaining public servants and agencies.
He said the 2017 pay adjustment for teachers would be paid from Pay 13 to Pay 16.
In addition is the back pay from Jan 1, 2017, will be paid in separate quarterly amounts.
Group 2 will be paid in a similar manner from Pay 17 and Pay 18.
Group 3 will be completed by Pay 22.
“The same process will be repeated for the 2018 back pay for the three groups in the same manner after the completion of the 2017 back pay.”
Kapavore said it was the only way the Government would be able to settle the outstanding payments.
He thanked the public sector unions for their understanding and cooperating on the delayed payments of the awards.