The new Cayman Islands government is pressing ahead with a higher minimum wage as of January 2026 after the former government rejected the 2023 recommendation from the Minimum Wage Advisory Committee.

The Cayman News Service reported on answers emerging from question time in Parliament, when Michael Myles, the labour minister, said the new basic wage of $8.75 an hour will be implemented, and other measures would be considered going forward.

The publication reported: “Mr Myles made it clear that this rollout will be across all sectors and there will not be a requirement for it to be subsidised by tips in the hospitality sector.

“He said there was much more to be done, but it was time to increase the inadequate rate of just $6 an hour. He noted that the [Cayman Islands Government] was following the advice of experts, given the amount of work and research that had gone into the report.”

Mr Myles brushed aside questions about putting together a team to gauge the impact of implementing the measure, saying all of that work had already been done by the committee and it was well documented in the report.

During the questioning by Dwayne Seymour, the labour minister in the former government, Mr Myles said other recommendations in the report would also be rolled out.

Mr Seymour suggested that some employers would not be able to afford the increase for domestic helpers. Mr Myles said that had been considered in the report. He conceded the possibility of unintended consequences regarding helpers, but noted there were real concerns about people who were earning just $6 per hour.

The Cayman News Service quoted him: “We have people here in our country who are living pay cheque to pay cheque, who are struggling to meet normal bills because they are being paid $6 per hour. I understand the helper situation, which is why we are… implementing [the new minimum wage] on January 1, 2026.”

The first step will include the implementation of the basic rate as the country is advised of other steps the Government is considering.