Unionised healthcare workers who endured financial hardship in the face of ongoing wage freezes are set for a salary increase of 18.23 per cent, effective this month, The Royal Gazette has learnt.

The workers will also receive retroactive pay covering the period April 2022 through October 2025 which will be made in two instalments, scheduled for January 31 and April 30 of 2026.

The pay deals were ironed out recently between officials of the Bermuda Hospitals Board and the Bermuda Public Services Union in the wake of months of discussions.

Hospital staff informed the Gazette that the two bodies had held salary negotiations last month at the union’s request.

After the discussions, the BPSU provided the BHB with an outline of several timelines for the payment of salary rises and retroactive payments for the healthcare workers.

According to correspondence seen by the Gazette and signed by Armell Thomas, the BPSU’s president, the union informed the healthcare workers on Thursday of the “approved” salary uplift and back pay.

The correspondence included confirmation signed by R. Scott Pearman, the chief executive and president of the BHB.

The union said: “This outcome represents a significant achievement for the BPSU on behalf of its members and is a testament to the power of steadfast advocacy, collective strength and principled negotiation.

“We know that members have been eagerly awaiting confirmation of these details and we deeply appreciate your patience and understanding throughout this process.”

In a BHB response, Mr Pearman told the BPSU: “I wish to thank our staff and your members for their exceptional patience and co-operation in assisting BHB and Government during these difficult financial times while providing care to the most vulnerable in our community.

“We are also very grateful to the BPSU and Government for their assistance in bringing this matter to a satisfactory closure.”

Mr Pearman acknowledged the Government’s support in setting out the payment schedule.

In February, BHB staff, in an anonymous op-ed, said they were “at breaking point” owing to a seven-year freeze on salary increases.

The staff concerns were acknowledged by Mr Pearman, who confirmed that the majority of staff had not had a pay rise since 2018 and that the board was under increasing financial pressure because of eroding revenues.

In February, he thanked staff who “step up whenever the country needs them”.

He said: “The costs of living have been rising and staff frustration at their level of pay is evident.”

Mr Pearman also highlighted that the majority of staff, including doctors, nurses and non-executive administrators, were represented by the BPSU.

In June 2019, BHB moved to a fixed annual government grant of $322 million.

The BHB made public its unaudited financial information in February 2020 for the previous three years, revealing that its annual salaries bill had risen to almost $200 million.

The organisation went through a series of cost-cutting measures, including limiting repairs and upgrades to essential needs.

In the 2025-26 Budget, the Government allocated $245.4 million to the Ministry of Health, an increase of $45 million or 22 per cent on last year.

A significant portion of the funding was set aside to support the BHB, including $112.5 million in patient subsidies as well as a $42.1 million operational grant for the Mid-Atlantic Wellness Institute

Mr Pearman said that the Government was sympathetic to the hospital’s financial issues and understood an increase in staff salaries required an uplift in revenue for the BHB.