Civil Servants to Receive Retroactive 2.5% Adjustment Once 2026 Budget Passes

GREAT BAY--Civil servants are set to receive the long-awaited 2.5% cost-of-living adjustment, retroactive to January 2026, once Parliament approves the 2026 National Budget and Government moves forward with the payment process, Minister of Finance Marinka Gumbs has stated.

The adjustment is specifically provided for in Budget 2026 and has been one of the outstanding financial commitments awaited by civil servants. According to Gumbs, passage of the budget will clear the way for Government to proceed with implementing the payment.

“Our civil servants have been waiting for this adjustment, and I understand what it means to them and their families, especially at a time when the cost of living continues to be a concern,” Minister Gumbs said. “Once the budget is approved, Government can move forward with the process to have this adjustment paid.”

In addition to the 2.5% indexation, Budget 2026 provides funding to fill critical vacant positions throughout Government.

Budget 2026 projects approximately Cg. 647 million in revenue and Cg. 636 million in operating expenditures. It also includes Cg. 163 million in capital investments intended for infrastructure, public services and national development.

Funding is also provided for education, healthcare and social development, justice, infrastructure, economic development and the continued modernization of Government. The subsidized school boards are also included.

For the Ministry of Finance, Gumbs said work will continue on modernizing the Tax Administration, strengthening financial management and controls, improving tax compliance and making Government’s financial systems more efficient and accountable.

The 2026 budget also introduces policy-based budgeting for the first time, an approach intended to create a stronger connection between Government spending, policy priorities and measurable results.

Gumbs again acknowledged that the 2026 budget was submitted later than it should have been.

“I have never tried to make excuses for the delay. We must do better, and we are doing better. The lessons learned from the 2026 process have already been applied to Budget 2027,” she said.

The Finance Minister also cautioned against presenting Budget 2026 as a solution to every challenge facing St. Maarten.

“There is still a lot of work to be done. We will not get everything right overnight. What is important is that we continue to improve, remain accountable and keep working in the interest of the people.”

Gumbs thanked Members of Parliament for the questions, concerns and recommendations raised during the budget debate, as well as her fellow ministers and civil servants who contributed to preparing the budget.

“Whether coalition or opposition, Parliament has an important responsibility to question Government and hold us accountable. We may not always agree, but at the end of the day, we all serve the same people and the same St. Maarten.”

She said the significance of the upcoming vote is that it allows Government to move beyond planning and debate and begin executing measures already included in the budget.

“For our civil servants, it means moving forward with their retroactive 2.5% adjustment. For Government departments, it means filling critical vacancies. For the country, it means moving forward with investments and programmes that have been budgeted for.”

Gumbs said she looks forward to Parliament’s decision and acknowledged that substantial work will remain even after the budget is adopted.

“Budget 2026 represents an important step forward for our civil servants, our Government and our country. There is still much work ahead, but with accountability, cooperation and a shared commitment to St. Maarten, we can continue building on the progress we have made.”

The Minister concluded by stressing that Government will ultimately be judged by whether its plans produce results for residents.

“My commitment has always been, and will continue to be, to the people of St. Maarten. The decisions we make today must improve the lives of our people, create opportunities for our young people, provide greater security for our families and strengthen the future of our country. I understand that people are looking to Government not only for plans and promises, but for results. That is why I will continue to stand up for the interests of the people, remain accountable for the work entrusted to me and do my part to ensure that we turn our plans into action. St. Maarten deserves progress, opportunity and a Government that continues working for its people. Let us continue moving forward together.”

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