Cabinet Approves 28.5 Per Cent National Minimum Wage Increase

• Cabinet has approved a 28.5% increase in the national minimum wage, effective April 1, 2022. Minister of Labour and Social Security, Hon. Karl Samuda, says this will see the rate moving from $7,000 to $9,000 per 40-hour workweek. The minimum wage for industrial security guards will move from $9,700 to $10,500 per 40-hour workweek, along with accompanying allowances. 
• Jamaica’s economic recovery has been a major contributing factor to the minimum wage increase. Minister Samuda highlighted that the minimum wage could see a further increase however that would depend on the pace at which the Jamaican market recovers. 
• Given the pace of inflation, raising the minimum wage is important to ensure that minimum wage earners can maintain a basic standard of living by providing a more appropriate income level to cope with the increased cost of living. However, the increase will likely result in higher operating expenses for companies, which could in turn raise prices of goods and services to cover increased labour costs. This could further fuel inflation.

(Sources: JIS and NCBCM Research)