Government Approves Tax-Free “COLA” for Public Sector Workers and Pensioners

A photograph of Prime Minister Dr Ralph Gonsalves as posted by the Agency for Public Information.

By Val Matthias. Updated 2:12 p.m., Tuesday, November 18, 2025, Atlantic Standard Time (GMT-4).

The Government of St. Vincent and the Grenadines has approved a one-off, tax-free Cost-of-Living Allowance (COLA) for a wide cross section of public sector employees and central government pensioners. The payment will be disbursed at the end of November 2025.

The COLA will amount to three percent (3%) of the recipient’s monthly salary or wages, calculated over a three month period. This measure applies to public servants, nurses, teachers, police officers, prison officers, non-established employees, and pensioners under the central government.

This initiative was first signaled during the Prime Minister’s official address at the 46th Independence Anniversary celebrations held on October 27, 2025, under the theme “Relying on the Genius of Our People.” The speech emphasised national solidarity and economic resilience in the face of rising living costs.

While the Independence Message outlined the government’s intent to support citizens through targeted relief, the specific COLA payment details were formally confirmed in the Cabinet approved directive held today.

The COLA is non-taxable and will be processed as a one-time payment.

Eligible individuals are encouraged to contact their respective ministries or payroll departments for further clarification.

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