Prime Minister Dr. Ralph Gonsalves has announced an increased in public assistance of EC$360 (One EC dollar=US$0.37 cents), saying that the increase is retroactive to three months.
Gonsalves also announced that public sector workers will receive a three per cent Cost of Living Allowance (COLA) for three months.
‘A Christmas COLA will also be paid to all public servants, nurses, teachers, police officers, prison officers and non-established employees in the central government as a one-off payment tax-free, of three per cent of the person’s salaries or wages for three months,’ Gonsalves said.
Delivering his Independence Day address on Monday evening, Gonsalves said the minimum pension paid by the National Insurance Service (NIS) will be raised to the same amount, with the government contributing the additional EC$40 for each of the 1,910 pensioners, until an actuarial review is done, as required by law.
He said there are 4,646 people on public assistance, a social welfare programme through which the government gives a monthly payout to poor and vulnerable people, including the disabled.
Before Gonsalves’ announcement, public assistance recipients who are less than 65 years old received EC$280 monthly while those older received EC$300.
The prime minister said that from December, all recipients will receive EC$360 a month and that is in addition to the expanding menu of social safety net assistance, including housing, rents, food packages, lump sums for particular adverse events, and medical and pharmaceutical support.
‘To assist in cushioning the expenditure for persons who are receiving public assistance, I will be backdating this increase from September 1, 2025,’ Gonsalves said.
‘So, for a person receiving EC$280 a month in Public Assistance, his or her payment from December will be EC$80 more, but at the end of November, he or she will receive, in addition to his or her regular EC$280, a backdated lump sum of EC$240 – the additional EC$80 for each of the three months of September to November inclusive.’
Gonsalves said this was a kind of public assistance Cost of Living Adjustment, similar to what he announced for other categories of Vincentians.
Gonsalves said that the increase in public assistance for the four months will cost the Treasury EC$1.246 million, adding that it will be EC$3.74 million annually.
Gonsalves told the nation that when his Unity Labour Party (ULP) came to office in 2001, public assistance was EC$50 a month.
‘We have increased it some six times before the latest round of increases and expanded the list to accommodate more persons, particularly the elderly, the infirm and the physically challenged who are in need.’
He said any government has to be alert to the difficulty of increasing the monthly cash payment of public assistance above the minimum monthly payments for the pensioners at the NIS.
The NIS minimum pension is determined following a periodic actuarial review, as required by law.
‘Currently, there are 1,910 pensioners at the NIS who are on a minimum pension, out of nearly 10,000 pensioners overall on the NIS roll,’ Gonsalves said, receiving a minimum pension of EC$320 monthly.
‘These would have contributed to the pension fund. So, it is unfair to them, having contributed to the national insurance pension fund, that they should get less than the non-contributory public assistance,’ he said, adding that the people on minimum pensions rightly complain whenever public assistance payments exceed theirs.
The prime minister said he was correcting this until the next actuarial review, adding that in addition to the minimum NIS pension of EC$320 monthly, the government will pay through the NIS an additional EC$40 to bring the minimum pension to EC$360.
‘Not only that, because I give the back pay for the non-contributory pension, I’m also giving the back pay of the $40 for the three months, so they will get an additional $120 in a lump sum to help them between September and November.’
Gonsalves said the cost to the treasury for this support from September to December will be about EC$250,000.
‘I have to say, for completeness, those who are on the NIS have some additional benefits, such as a funeral grant for the family of a pensioner.,’ Gonsalves said, also announcing that his government will increase from EC$275 to EC$400 the monthly pay-out per foster child to foster families.
‘I know somebody may be saying, ‘Well, I have space for three foster children, so I’ll get EC$1,200.’ But remember, the ministry will vet you to see that you’re an appropriate person to be a foster mother.’
He said there are currently 165 children in foster care, either with families or with mothers who are not families or in institutional care, adding that the government will back date this increase to September.
Gonsalves said that the Christmas COLA to public sector workers will cost the Treasury three million EC dollars and that in January, the government will engage public sector unions on salary-related negotiations for three years, to be included in the 2026 budget.
Gonsalves also announced that 2,704 people who had been assessed to be in severe need and who were paid a COLA of EC$175 monthly for three months earlier this year will be paid a Christmas COLA of another three months from October to December this year.
‘This Christmas cola will be paid by the end of November 2025. This will cost the Treasury $1.4 million,’ he said.