2014/2015 Cost of living adjustment for the Public Service

26 March 2014

This communiqué serves to inform members about the 2014/2015 Cost of Living Adjustment.

Background Information:

  1. In 2012, we signed a multi-term salary agreement of three years that covers 2012 to 2014, that is resolution 1 of 2012.
  2. It is stated in the resolution that the 2013 and 2014 increment will be based on annual average CPI plus 1 %.
  3. The resolution also provides that if there is a shortfall between the annual CPI increase and the actual CPI in a particular year, the employer will pay the difference.
  4. The effective date will be 1st of April in 2013 and 2014.

Given the above information this is to confirm the following:

  1. The projected average CPI for 2014 is 6.2%
  2. Therefore, the 2014/2015 salary adjustment will be 6.2% plus 1% which is equal to 7.2%
  3. The effective date is 1st of April 2014, however the employer has stated that due to the huge number of government employees and the period the increase has been confirmed it will not be possible to make payment on 15 April. The employer states that the 7.2% will be paid on the 15th of May 2014 backdated to 1st of April 2014.
  4. In 2013, the increment was 5.6% based on annual average CPI plus 1% which gave us 6.6% increase for the year. By the end of the year the actual CPI was 5.8% implying that there was a shortfall of 0.2% in 2013 salary increase.
  5. This is to confirm that the employer will pay the difference of 0.2% on 1st of May 2014 backdated from 1st April 2013.
  6. The employer states that the payments of 7.2% and 0.2% will be done separately as per dates above so that the employees can see the different payments. The 0.2% is pensionable. The employer states that there will be no special runs for these payments in order to avoid any confusion and uncertainty.

To read more about the Resolution please click here to download the document