PUBLIC SERVANTS GET 3% PAY RISE FOR 2026

The Department of Personnel Management (DPM) has formally signed a three-year Pay Fixation Memorandum of Understanding (MoU) with the Public Employees Association (PEA) to award a three per cent salary increase for public servants, effective of January 1st, 2026.

Under the agreement covering the period 2026-2028, DPM Secretary Taies Sansan said the move reflects the Government’s commitment to recognising the contribution of the public service while maintaining fiscal responsibility.

“This arrangement provides fair and sustainable improvements to salaries and employment conditions for public servants,” she said.

Secretary Sansan said that the proposal by PEA for seven per cent general salary increase to the base salary was not feasible given the current financial position of the government and recognizing the governments current medium term fiscal strategy and the 13-year Fiscal Consolidation plan.

She added that based on affordability of the budget to fund any increase in the salary, the State awarded a three per cent general salary increase to the base salary of public servants.

Secretary Sansan also thanked the Department of Treasury for their professional technical advice on the feasibility of the budget to fund the increase in salary and for ensuring the that three per cent had been factored into the 2026 budget.

She said the increase has been incorporated into the 2026 national budget and is set to take effect at the start of the calendar year.

The MoU marks a milestone in labour relations between the State and the union, with PEA President Isowa More describing the agreement as a “milestone” in maintaining industrial harmony and enhancing public service welfare.

“I urge all public servants to join PEA, for their good, so that we can work together towards future welfare benefits,” said Mr More.