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Why raising minimum wage is right step forward

Lauren Bell, the Junior Minister of Health, Economy and Labour, and Housing and Municipalities (Photograph supplied)

On September 1, Bermuda will implement a new statutory minimum wage of $17.13 per hour, in keeping with this government’s unwavering commitment to fairness and economic dignity for all. More than 2,500 workers, many in lower-paid sectors, will benefit directly.

This increase in the minimum wage is not just an economic adjustment; it is a recognition of the dignity of work, ensuring that full-time employment becomes a pathway out of hardship, not a trap within it.

The decision to increase the minimum wage was guided not by political expediency but by sound evidence, social responsibility and international best practices.

The Wage Commission, established under the Employment (Wage Commission) Act 2019, has done critical work in assessing the realities of Bermuda’s labour market and cost of living.

The findings were clear: a minimum wage that stagnates risks entrenching poverty.

This is especially true for workers in sectors such as hospitality, retail, caregiving and personal services; those who serve our communities every day, but are too often left behind. These are real people with families to feed, rent to pay and futures to plan.

The new rate is grounded in data, reflecting the inflationary realities of 2023 and 2024.

Future adjustments will follow a predictable, transparent process: biennial reviews based on objective measures, capped at 2.5 per cent to safeguard both workers and business viability. This gives employers time to adapt and plan, while giving workers the reassurance that their wages will not erode with rising costs.

This approach aligns with global principles, particularly those advocated by the International Labour Organisation, which underscore that fair and regularly reviewed minimum wages are essential to reducing inequality and building resilient economies.

There are those who worry about potential disruptions to business. That is understandable. But let us be clear: lifting wages is not a threat to prosperity, but rather a foundation for it. Economies are strongest when all participants can share in the growth that they helped to create. When workers earn more, they spend more — investing in their communities, their families and their future. This, in turn, supports small businesses, stabilises our economy and strengthens the social fabric of our island.

This government understands that economic justice is not a one-time achievement but a continuing responsibility. By raising the minimum wage and committing to regular, transparent adjustments, we are building a fairer Bermuda — one where dignity is not reserved for the few, but extended to all.

Ultimately, this is about more than dollars and cents. It’s about the kind of society we want to be — one where everyone who contributes to our economy is afforded the opportunity to live with dignity.

As junior minister, I am proud to have played a part in this effort. Our commitment to fair labour practices and inclusive growth will continue because a stronger, more equitable Bermuda benefits us all.

Lauren Hayward Bell, a government senator, is the Junior Minister of Health, Economy and Labour, and Housing and Municipalities

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Published August 08, 2025 at 7:59 am (Updated August 08, 2025 at 7:12 am)

Why raising minimum wage is right step forward

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