The Government is looking to introduce laws to mandate pay transparency across all business sectors, the Minister of Economy and Labour announced.

Jason Hayward said during a press conference at Global House that his ministry is advancing a policy proposal to promote the prevention of unfair pay practices based on factors including gender, race and nationality.

Mr Hayward said the move is intended to improve clarity, accountability and fairness by ensuring that pay decisions are based on “an objective and non-discriminatory criteria”.

He said consultation would take place and would also take into consideration benefits such as housing allowances that are sometimes afforded to expatriate workers. The consultation is expected to last six weeks.

He said: “By strengthening transparency around how pay is set, how roles are valued and how progression occurs, this proposal seeks to close unjustified pay gaps and build greater confidence in Bermuda’s labour market, for workers and employers alike.

“At its core, this proposal is grounded in a simple and widely recognised principle — equal pay for equal value. This means that workers should receive equal pay when their work is assessed as being of equal value, based on objective criteria such as skills, effort, responsibility, experience and working conditions.

“This principle supports fairness and reflects international labour standards. Importantly, Bermuda’s approach to pay transparency is aligned with the guidance and principles of the International Labour Organisation which identifies pay transparency as a key mechanism for realising equal pay for work of equal value.”

Mr Hayward set out a list of recommendations that have been laid out including mandatory pay transparency policies for businesses, clear and objective salary-setting criteria, employee access to pay information, restrictions on salary history inquiries by employers and the publication of salary ranges in job advertisements.

Asked about whether the policy proposal extends to benefits such as housing allowances, Mr Hayward responded: “I think any sound policy would look at the entire compensation package because that is where a lot of the inequalities exist.

“I find it very difficult to continue to justify how non-Bermudians get housing allowance while Bermudians do not get housing allowance or even a subsidy for housing.”

He said he rarely found a rational response from businesses as to why the practice took place, adding: “It is an inequality that I believe needs to be eroded.

“Housing is a challenge for Bermudians and non-Bermudians, and I don’t accept that one employee should receive a housing allowance and another employee who is doing the exact same work is not receiving any kind of allowance or contributions to housing.”

Mr Hayward acknowledged businesses’ need to attract workers to the island from their home countries, often leaving their families and support systems behind, but said the process should be transparent and where benefits are granted, limits should be put on the amount of time they receive them when workers decide to reside and work here for the long term.

Mr Hayward said he expected the legislation to be tabled during the current Parliamentary session.

He stressed that transparency should be supported by meaningful oversight and that the proposal includes mechanisms for enforcement and compliance.

“It also includes strong protections to ensure that workers are not penalised or treated unfairly for exercising their rights or raising concerns about pay,” he explained.

Mr Hayward said labour inspectors would play a central enforcement role including referring serious issues of non-compliance to the Employment and Labour Relations Tribunal and issuing penalties where employers fail to meet their obligations.

Penalties are being considered for employers who fail to comply as well as for lack of corrective action where inequalities that exist.

Mr Hayward said according to government data, there are widespread inequalities based on gender, race and nationality across multiple business sectors.

A background paper cited statistics showing that the gross median income for Bermudians was 22 per cent lower than non-Bermudians while the gross median income for white workers was about 50 per cent higher than Black Bermudians.

However, there were no statistics cited for people in the same role with the same experience and it acknowledged that expatriates were often recruited for highly specialised roles requiring skills not readily available on island.

It added: “ Although Bermudians have full rights to work, many still face barriers to higher paying roles, including differences in education, professional exposure and industry experience.”

Mr Hayward said: “This initiative is not about placing unnecessary burdens on employers. It is about promoting good employment governance, supporting fairness and creating workplaces that are transparent, trusted and competitive.”

Members of the public can provide feedback on the policy by visiting www.forum.gov.bm