Trinidad & Tobago: Stay Tuned For Minimum Wage Update

• Finance Minister Colm Imbert has confirmed that the Cabinet is actively considering the prospect of raising the minimum wage in the country. Imbert made the statement during a virtual news conference held on August 9.
• The current minimum wage in Trinidad and Tobago stands at $17.50 per hour. However, during the Labour Day celebrations, the Joint Trade Union Movement (JTUM) advocated for an increase to $30 per hour.
• 'We are looking at it (increasing the minimum wage); there has been a proposal,' Imbert said. However, he warned that it is a delicate balancing act as it could directly impact the government's wage bill and the overall economy.
• 'One of the things you have to understand is that in addition to helping people by increasing the minimum wage, that will help people on the lower end, it affects the other side. It has an effect on businesses and then it has an effect on the state sector because in some areas some of the state sector employees are paid at the minimum wage level and therefore anytime you increase the minimum wage the government's wage bill is going to go up so these are the things we have to balance but it is something we are actively looking at again I would say stay tuned for developments on that,' he said.
• Imbert was however tight-lipped on what the new minimum wage could be.
• A rise in Trinidad & Tobago's minimum wage could lead to greater inflationary pressures. Higher wage costs might prompt businesses to increase product prices. Additionally, workers with more income could boost demand for goods, potentially driving up prices if supply does not match demand. The government, too, might have to contend with a larger wage bill, especially if many state employees earn the minimum wage. This could lead to policy shifts, such as reduced spending coupled with new and/or increased taxes, with potential inflationary consequences.

(Source: Trinidad Express Newspaper)