AUDITOR GENERAL REPORTS ON PAST FIVE YEARS OF PUBLIC SERVICE PAY

A new report by the Office of the Auditor General (OAG) has given a detailed insight into the public service of the Cayman Islands, the complex network of ministries, departments, and agencies that underpin the jurisdiction’s administrative system.

Titled “Public Servants’ Remuneration, 2020–2024”, the report presents information about the remuneration of the public service, which includes all civil servants and employees of statutory authorities and government companies (SAGCs), for the five years 2020 to 2024.

The detailed 50-page document outlines the distinction between civil servants and government companies(SAGC) employees across the review period.

In a comment accompanying the report, Auditor General Patrick Smith said: “The public sector relies on its staff to deliver services. It is not surprising, therefore, that around half of all public sector expenditure is on staff remuneration costs.”

Mr Smith added: “Over the five years 2020 to 2024, the Government spent around $3.1 billion on staff costs, including salaries, pensions, healthcare, and other costs.” The Auditor General also pointed out that over the five years, remuneration costs for the public sector increased by 37 per cent. he said that a growing number of public servants drives part of the increase, and some relates to cost-of-living awards to keep salaries better in line with inflation.

ALL PUBLIC SERVANTS

Between 2020 and 2024 the government spent $3.1 billion on public servants’ remuneration over the five years. Of this, $1.9 billion (61 per cent) relates to civil servants’ remuneration. The remaining $1.2 billion (39 per cent) relates to the remuneration of SAGC employees. The top four categories of remuneration – salaries and wages, healthcare, pension and overtime – accounted for $2.9 billion, or 96 per cent of the total remuneration.

Public servants’ remuneration increased by 37 per cent over the five years, from $521 million in 2020 to $712 million in 2024.

The number of public servants increased by 14 per cent over the period, from about 6,900 in 2020 to about 7,900 in 2024.

The average remuneration of public servants increased by 19 per cent from about $76,000 in 2020 to about $90,000 in 2024.

The 19 per cent increase in the average remuneration of public servants is less than the price increases due to inflation of 22 per cent over the same period.

Between 2020 and 2024, the Government awarded two cost-of-living salary adjustments (COLAs) to public servants, cumulatively increasing their remuneration by about 10 per cent. With effect from January 2025, the Government awarded an additional 5 per cent COLA to all public servants.

CIVIL SERVANTS

The report also sets out the remuneration of civil servants and SAGC employees in separate chapters. It highlights the following about civil servants’ remuneration between 2020 and 2024:

The Government spent $1.9 billion on civil servants’ remuneration.

Five categories of remuneration – salaries and wages, healthcare, pension, overtime, and duty allowance – accounted for $1.8 billion, or 97 per cent of total civil service remuneration.

Civil servants’ remuneration increased by 34 per cent from $319 million in 2020 to $427 million in 2024. The number of civil servants increased by 13 per cent from about 4,300 to 4,800. The average remuneration of civil servants increased from about $75,000 in 2020 to about $88,000 in 2024, an 18 per cent increase.

SAGCs

The Government spent $1.2 billion on remuneration for SAGC employees.

Five categories of remuneration – salaries and wages, healthcare, pension, overtime and special allowances – accounted for 97 per cent of the $1.2 billion total.

SAGC employees’ remuneration increased by 41 per cent from $202 million in 2020 to $285 million in 2024. The number of SAGC employees increased by 16 per cent from about 2,600 to 3,100 over the five years.

The average remuneration increased by 21 per cent, from about $77,000 in 2020 to about $93,000 in 2024.

The report also highlights that the Government owed about $2.8 billion in liabilities for defined benefit pensions and post-retirement healthcare for current and former public servants as at 31 December 2024.

According to Auditor General Smith: “The Government’s expenditure on public servants’ remuneration is significant. Therefore, I prepared this report to provide independent information and improve transparency regarding this expenditure.”