12 Jun 2013

Newly solvent Guam government to raise public sector pay

9:55 am on 12 June 2013

Guam's newly solvent government plans to increase the pay of public servants after several years of wage freezes that have helped it clear its 300 million US dollar short term deficit.

The communications director says although the Hay Study under a previous government recommended a 13 million dollar pay increase across the public sector, the current government realised it was unaffordable.

Troy Torres says now the short term deficit has been paid - largely through being turned into long-term debt - it can reconsider the recommendation.

He says although the government will remain cautious in its spending, it understands the most important asset to any organisation is its employees.

"And so that's why the government has notified the legislature that a portion of next year's budget, which used to go towards deficit elimination, he wants to dedicate that towards phased-in implementation of the Hay plan, which were the pay adjustments."

Troy Torres says Guam's budget should remain in the black for the foreseeable future.