Minimum wage increase recommended every two years
The Wage Commission has recommended that the minimum wage be increased by 73 cents per hour effective September 1 in a report tabled in the House of Assembly today.
Jason Hayward, the Minister of Economy and Labour, said that the commission proposed increasing the minimum hourly wage from $16.40 to $17.13 this year to keep in line with inflation.
“This adjustment is not merely an incremental change,” he said. “It is a vital investment in our society and economy.
“A minimum wage that keeps pace with the cost of living is fundamental to ensuring that full-time work provides a pathway out of poverty, rather than trapping individuals in it.
“This progressive approach helps to reduce reliance on social safety nets and builds a more resilient economy from the ground up.
“It is anticipated that more than 2,500 workers will benefit from this adjustment, primarily those in the service and sales sectors.
“These workers include individuals employed in hotels and restaurants, retail workers, personal care workers, cleaners, beauticians and domestic workers.”
The commission’s report, tabled in the House, recommended that the minimum hourly wage be adjusted based on the annual rate of inflation, capped at 2.5 per cent, using the consumer price index as an indicator.
The average rate of inflation in 2023 was 3.3 per cent, while it fell to 1.9 per cent in 2024.
“While wages generally increase over time, there may be occasions when wages actually decline,” the report said.
“Therefore, in alignment with global best practice, we recommend that the minimum hourly wage be reviewed every two years utilising the information from the Employment Survey as well as the Labour Force Survey, which is produced biannually.
“Progressing the statutory minimum hourly wage rate every two years will minimise potential disruptions to businesses and allow employers to adjust their operations and pricing strategies accordingly, mitigating any adverse effect on employment levels or business viability.”
Mr Hayward said the position falls in line with the best practices of the International Labour Organisation, which has said minimum wages should be reviewed and adjusted.
“Their conventions and recommendations highlight that fair minimum wages are essential for decent work, social protection and inclusive economic development,” he added.
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