Is the Minimum Wage Increase Enough?

I recently went shopping with $3000.00 and was shocked to discover the few items that I was able to purchase with that amount of money.

Perhaps shocked is not the right description, after all prices have been steadily rising on most products.

There is a huge concern though, as although prices have risen, most salaries have not significantly risen. Of particular note is that there are a number of people who earn below minimum wage so they struggle even more than others to purchase the items that they need.

Minimum Wage

The National Minimum Wage is the lowest amount that a worker should be paid in Jamaica.

The last time The National Minimum Wage was increased was in January 2014. It was increased from $5,000 to $5,600 for a 40-hour work week.

That would amount to approximately $20,000 per month.  If you consider that most persons have to pay rent which ranges between a low of $8,0000 to a high of $15,000. per month then the dire situation of those earning minimum wage is highlighted.

New Rates

According to media reports, Effective March 1, ‘the new minimum wage for a 40-hour work week will be $6,200 up from $5,600 while the minimum wage for industrial security guards will be $8,854 up from $8,198.’

That will certainly be welcome news to all minimum wage workers as although it will still be a struggle they might be able to give their families a slight improvement in their daily lives.

Is it enough?

There are those of course who will lament that the increase is too slight to make much difference in the lives of minimum wage earners.

They insist that the National Minimum Wage should be raised to $10,000 for a 40 hour week.  This would ensure that workers are able to better meet their needs.

While it would certainly be beneficial if the minimum wage was increased even further, there must be a discussion about the cost to the employer.  If the National Minimum Wage is placed beyond the reach of the average employer, this can create a backlash. Employers might opt to lay off staff and reduce the number of employees so as to be able to pay the ones they keep.

In moving forward then, let us hope that the increase in The National Minimum Wage is one which will benefit employers and employees alike!

That’s my two cents. What’s your take on the issue?

Teri Ann Renee Paisley

Gleaner online writer

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