Gov’t Set to Roll Out Public Sector Pay-for-Performance System in 2025/26

As fiscal year 2025/26 approaches, the Government plans to undertake significant implementation of the pay-for-performance element of the new public-sector compensation system.

Minister of Finance and the Public Service, Hon. Fayval Williams, made the disclosure as she opened the 2025/26 Budget Debate in the House of Representatives on Tuesday (March 11).

“We have begun the conversations with our union partners because we must continue to transform to provide the framework and tools to improve productivity in the public sector. The pay-for-performance system is a key component in incentivising performance in the public sector,” she stated.

Meanwhile, Minister Williams advised that the Government has been able to address some of the new compensation system’s residual issues.

She informed that the Government and unions have agreed to two key policies – one for work done outside of normal working hours and the other for the provision of uniform allowances.

“In the upcoming fiscal year, we will implement a new phase of the Public Sector Transformation Programme to build on the gains made in Phase One. Phase Two will focus on digital transformation, continuing to ensure the requirements for increased productivity in the public sector are in place. We eagerly look forward to the commencement of the programme,” Mrs. Williams said.