Should Minimum Wage be increased?
Author : teriannDo you know why minimum wage is so important?
Minimum Wage is the lowest wage permitted by law or by a special agreement. If there was no minimum wage, persons would be paid at the whim of their employer.
Can you imagine those ‘tight-fisted’ employers trying to cheat their employees by paying them what ever amount they felt they deserved?
It would cause chaos as persons scrambled to pay their bills on their meagre salaries. The opposite is also true as some employees would take advantage of their employers by over charging them for their services.
The National Minimum Wage was last increased in January 2014, moving from $5,000 to $5, 600 for a 40-hour work week. The minimum wage for industrial security guards was also increased by 12 per cent, moving from $7, 320.40 to $8, 198.80 per 40-hour work week.
Is it Enough?
A quick glance at the wages are not enough to see the full picture take a good look and you will see some inherent problems with the figures!
If you earn $5,600 a week or $22,400 per month and $268,800 a year.
Is this enough to pay the bills?
Well let’s examine the average daily costs.
There must be at least some money set aside for rent for a humble room or two. Then of course, there are utilities, food and transportation costs that have to be considered.
The average minimum wage earner often needs to rely on other earnings such as ‘throwing a partner’ or doing some kind of home based business along with their regular job.
Should it be raised?
The loudest detractors in the debate for minimum wage increase are the employers. They contend that if minimum wage is increased they will no longer be able to pay their workers.
This would mean that some workers will lose their income which in the long run is worst than having a low paying job.
Pressure would then be placed on the remaining workers who now have to do double the work for only slightly higher pay.
There are talks in the works as The Planning Institute of Jamaica’s (P.I.O.J.) has projected that the National Minimum Wage (N.M.W) should move by 13 per cent, or $728 per 40-hour work week this year.
The increase would bring the minimum rate to approximately $6,328 per week. That would certainly relieve some of the pressure from low income earners.
So what’s your take on the issue?
Do you think the Minimum Wage should be increased? Sound off below!
Teri Ann Paisley
Gleaner online writer
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7 Responses to “Should Minimum Wage be increased?”
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The minimum wage should be increased. The cost of living in Jamaica is too high. People who work for minimum wage are often those with little or no education. I do not buy the argument that if you raise the minimum wage employers will be forced to lay off people. For small businesses that maybe true. I’ve heard the same argument in America every time the discussion comes up about raising the minimum wage yet these big corporations give their CEOs millions and millions of dollars for bonuses. Poor Jamaicans need a better standard of living and $5,600 per week cannot do this.
Hello Marion Pryce-White,
Thanks for sharing your thoughts on the issue. It’s true that those who work for minimum wage are often not very educated. They often have limited options for employment and are willing to work for low pay. There needs to be an honest discussion on how we can raise the standard of living for those earning minimum wage so they can enjoy a better quality of life.
Two issues to consider are that one, if the minimum wage is raised then the prices of goods and services will be raised as well to offset paying these workers more, secondly why would someone put them self in a position to earn minimum wage? How many poor decisions have that person made in life?
From a emotional standpoint we may say it should be raised but I am not sure it’s a good move economically.
the minimum wage should be raised but in reality maybe we should be looking at re-education of these low skilled workers as many of these industries that they are involved in are goanna be turned upside down in the event of digital developments self service tills etc.
How many people are currently earning a) minimum wage in Jamaica and b) How many people are earning between $7,000 and the current minimum wage?.This knowledge is relevant for discussion on minimum wage
I agree John, retraining is crucial so that they can be more marketable.
Good point V. Powell, emotions aside decisions have to be made that are in the best interests of all involved employers and employees.