Civil servants to receive 2.5% indexation under 2026 budget, vacant posts to be filled

GREAT BAY--Minister of Finance Marinka Gumbs told Parliament that the draft 2026 National Budget includes a 2.5 percent salary indexation for civil servants, to be paid retroactively to January 2026 once the budget is approved, as well as funding to fill long-vacant positions across government.

The Minister said the personnel-related measures are among the main reasons why the 2026 budget is higher than last year’s budget. Total expenditures for 2026 are budgeted at approximately Cg. 636 million, compared to Cg. 577 million in the 2025 budget, an increase of about Cg. 58 million.

According to Gumbs, approximately Cg. 21 million of that increase is tied to higher personnel costs. These include the 2.5 percent indexation for civil servants, the filling of vacant positions across ministries and departments, and personnel connected to projects financed through the TWO and the Trust Fund.

The Minister said filling vacant positions is essential to strengthening the public service and supporting the reforms government is trying to implement.

“These positions are critical to support the ongoing reforms and ensuring their sustainable implementation,” Gumbs told Parliament.

She explained that government has been operating with vacancies across several ministries, limiting the ability of departments to execute projects, deliver services and carry out reforms effectively. The 2026 budget, she said, reflects government’s intention to rebuild capacity within the civil service and improve the continuity and quality of public services.

Gumbs also noted that recruitment remains a challenge across all ministries, particularly when it comes to attracting and retaining qualified personnel. Despite this, she said government remains actively engaged in filling critical vacancies.

The Minister emphasized that the 2.5 percent indexation has been included in the 2026 budget and will be applied retroactively from January 2026 once the budget receives approval. She said this ensures that public servants receive the benefit that has been allocated to them for the year.

The personnel increase is one of two major drivers behind the higher expenditure level in the 2026 budget. The second is an increase in goods and services of approximately Cg. 39 million, largely linked to operational expenses connected to projects funded through the TWO and Trust Fund programmes.

Gumbs stressed that project-related spending does not place additional pressure on the country’s budget balance because corresponding revenues are also included in the budget. She said these activities are largely temporary in nature and linked to external funding arrangements.

The Minister also pointed out that first quarter personnel costs for 2026 were lower than budgeted, partly because the salary indexation had not yet been applied. Once the budget is approved and the retroactive indexation is paid, personnel spending is expected to move closer to the projected budget level.

Gumbs said the increase in personnel spending should be viewed within the broader policy-based budgeting approach introduced in the 2026 budget. Under this framework, government is seeking to link spending directly to policy objectives, measurable results and improved service delivery.

The Minister said the goal is not simply to increase the size of government, but to ensure that ministries have the human resources needed to deliver essential services, execute reforms and meet the growing demands of the community.

The 2026 budget projects revenues of approximately Cg. 647 million and expenditures of approximately Cg. 636 million, resulting in a projected surplus of about Cg. 11 million. Gumbs said the budget reflects government’s commitment to fiscal discipline while also investing in the personnel, institutions and services needed to support St. Maarten’s development.

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