Economists warn of inflationary pressure from PSA payout

Finance

Business

Politics

December 4, 2025

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Economists warn of inflationary pressure from PSA payout

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RADHICA DE SILVA

As the Government prepares to pay a ten per cent wage increase and roughly $3.8 billion in backpay to public servants, economists say the financial and macroeconomic effects must not be underestimated.

Speaking to Guardian Media yesterday, economist Dr Marlene Attz said the settlement carries “two major costs”—the one-off backpay and an additional $420 million in recurring annual expenditure once the wage increase takes effect.

Finance

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Politics

Sourced from Guardian. Visit their website to read the full story.

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