Announcement of new minimum wage in 2024 gets employers on their toes

The announcement by Labour Minister Soodesh Callichurn of the revision of the minimum wage threshold next year has got many in the private sector on their toes. SMEs have warned they will not be able to pay a salary increase without the state’s help.

The minimum wage has been revised in Mauritius, with effect from 01 January 2023. The minimum wage has increased from Rs11,075 to Rs12,075 per month.

“Instead of having a simple ‘minimum wage’, it would have been fairer to have a ‘National Living Wage’ based on what a worker and his family should receive to live a decent life, as advocated by the International Labour Organization (ILO),” Ashok Subron of the General Workers Federation (GWF) was cited as telling Defi Media.

Haniff Peerun, President of the Mauritius Labour Congress (MLC), said there is no need to have a committee to determine the minimum wage when the Minister of Labour can himself make the decision and determine its value.

Employers, on the other hand, are reportedly biting their nails.

“We do not agree with the announced revision of the minimum wage threshold. SMEs are already facing several problems with the increase in the ‘Repo Rate’, the wage compensation of Rs 1,000, the price of gasoline and high electricity tariff,” warned Maya Sewnath, President of SME Chambers. 

“We think there should be consultation on this subject because SMEs are going through difficult times right now, and nothing is being done to help us. Imposing new laws on us will make the situation even more difficult.”

Source: Defi Media