This week’s featured overall development as Newsmaker of the Week is the decision by Prime Minister Andrew Holness to forego his hefty salary increase under the new compensation review, a move that could have a negative impact for former prime ministers.
Facing days of heavy backlash for the Government’s decision to grant members of the local political directorate, including those at the Local Government level, massive salary increases, Holness appeared to have tried to strike a deal with Jamaicans who are struggling economically.
“I have directed the Transformation Implementation Unit (TIU) to remove the prime minister’s compensation from the new salary scale,” he said at a press briefing at Jamaica House on Monday evening while the country remained in uproar over the levels of his and other elected politicians’ salary increase.
“The prime minister’s compensation will, therefore, remain at its previous level,” said Holness, adding that no retroactive amounts will be applied to his salary.
Under the review, the prime minister’s salary was to have moved from $9.1 million in 2021 to $28.6 million on April 1, 2024.
By April 1, 2023, the head of Government would have gotten $25.3 million annually, and then over $28 million the following year.
Holness indicated at a press briefing that Cabinet Ministers, other parliamentarians and parish councillors are to all receive the new salaries that were outlined by Finance and the Public Service Minister, Dr Nigel Clarke, a week earlier.
Despite the apparent compromise that was arrived at by Holness, various groups staged protests, which were rather small in numbers, all calling for the other applicable politicians to take a similar decision.
Those calls have so far remained largely ignored by the Government, as politicians from the governing Jamaica Labour Party (JLP) defend the increases they received, while some party supporters and other citizens urged Holness to reconsider his decision and take the increase.
Some Members of Parliament (MPs) from the Opposition People’s National Party (PNP) have also been noticeably silent on the matter, despite their party leader Mark Golding and PNP General Secretary, Dr Dayton Campbell, calling for the general increases to be rolled back.
“Can you imagine the leader of a country is receiving less salary than the deputy prime minister? Madness! Stop fearing civil society and take the salary you (Holness) deserve,” a JLP supporter tweeted on Tuesday.
Mark Golding
“The (current) prime minister will be underpaid, and this is unfair. Pressure was unnecessary,” tweeted another individual.
Amid calls from the PNP and civil society groups for the entire salaries for the political directorate to be recalled and revised, another issue brewed on Wednesday that had effects for former prime ministers, due to Holness refusing the new salary hike, as former prime ministers in Jamaica all receive pensions that are pegged to the salary of the existing prime minister.
Clarke hinted at a post-Cabinet press briefing on Wednesday that the decision would be binding on any future holder of the office, but there have since been indications that any future prime minister with an elected mandate could simply review the Holness decision.
“What the prime minister asked is that the scale for prime minister remain as it is. So, that is the salary scale,” said Clarke.
“This is not an individual Andrew Holness decision. He has asked that the salary scale for (the) prime minister remains unchanged,” Clarke further indicated.
Dr Nigel Clarke
When quizzed by a reporter on whether the decision by the prime minister would impact retired prime ministers, Clarke did not respond directly, but repeated his response on Holness’ refusal of the refreshed salary for the prime minister.
Some have reported that this situation would mean that the former prime ministers and their widows will not have their pensions adjusted, based on the Holness decision.
The same would apply to former Prime Minister Bruce Golding, but he had opted years ago to not have his pension indexed to that of the salary of any current prime minister. He opted to take two-thirds of that salary.
There was further clarity from Holness on issues relative to his salary as he moved to dispel misinformation about his decision not to take the salary increase. The ‘misinformation’ included that he received more than one salary, given that he is also a parliamentarian and a Cabinet minister.
“For these discrete functions, the prime minister receives only one salary,” a statement from the OPM said on Wednesday.
It said that is in keeping with the long-established principle of the Government of Jamaica, that persons paid from the Consolidated Fund shall only receive one salary, regardless of the number of discrete jobs or functions they perform.
“For an abundance of clarity, the prime minister of Jamaica does not receive separate compensation as a Member of Parliament (MP) or as a Cabinet Minister,” the OPM said.
To those still critical of the increases granted to the elected politicians, Holness reiterated that, “I remain firm in my belief that adjustments are necessary to attract, retain and motivate the personnel with the calibre and skills required to improve the efficiency and effectiveness of Government.
“However, considerations of the public sentiment towards politicians and concerns over equity cannot be overlooked, he said.
On Monday, Holness announced a raft of accountability measures for Government ministers and parliamentarians, including fines for unjustified absences from parliamentary sittings and committee meetings.
The OPM also pointed out that another question that has been raised is how long the compensation of the prime minister would be removed from the new salary scale.
In response, Holness said: “This has broader implications for not only the current holder of the Office of Prime Minister, but previous holders of the office, and possibly future holders.
“A prime minister with a new mandate could always review the position,” said Holness.
A flurry of reactions were generated online relative to Holness’ decision in relation to his salary.
Opposition Leader and PNP President, Mark Golding, said Holness’ salary roll back was not enough, and suggested that his (Holness’) move was merely an attempt “to try and take pressure off himself”.
Golding reiterated that the pay hike is unconscionable for the political directorate, given Jamaica’s economy and widespread disapproval from citizens.
“I repeat the call for this entire salary package for the political directorate to be rolled back, to be discontinued, and for the matter to be considered afresh by an independent panel,” he said at a press conference at the PNP headquarters on Wednesday.
There were mixed perspectives across social media on the move by Holness to decline his massive salary increase under the Government’s compensation review.
“You deserve every penny because you are the first prime minister in recent times that didn’t get a pay increase that was not borrowed money,” a man claimed on Facebook.
“You grow our economy that you were able to buy fire trucks, police vehicles, build police stations, fire station, helicopter, aeroplanes, patrol boats, and put in water system in some areas without borrowing or any new taxes,” he stated.
In response, another male user commented: “So true, he (Holness) deserved every penny.
“It was not an easy road for this economy to turn around, and he done it with a lot of sacrifice.”
A woman shared that, “This move by the PM is a tacit admission that the whole exorbitant salary increase was ill thought out.
“When I heard about it, I closed my eyes and scratched my head wondering why the JLP would score an own goal at this time,” she said.
Shared another: “Mr Holness, it is good you reconsider it (the salary), but this should have never crossed your mind to take, because Jamaicans are suffering from (the effects of) inflation, sir.”