Between Rs1,500 and Rs2,000. That is the amount of salary compensation that all employees will receive by the end of January 2024.
This was announced by Renganaden Padayachy on Thursday 7 December.
The Finance Minister spoke during a press conference following the tripartite meeting at Sir Harilall Vaghjee Hall in Port Louis.
For example, an employee earning a monthly salary of Rs16,000 will receive a compensation of Rs1,600, while those earning over Rs20,000 per month will be entitled to a compensation of Rs2,000.
Additionally, the minimum wage will increase to Rs16,500, and the guaranteed minimum income will be set at Rs18,500 by the end of January 2024.
The salary compensation is expected to cost Rs10 billion to the government and Rs6.2billion to the private sector. Renganaden Padayachy emphasised that this is not a cost, but an investment.
In response to a query about a 14th-month payment, the Finance Minister clarified that it should not be equated with the salary compensation.
He stated that the 14th-month payment is a one-off that can be suspended at any time, while salary compensation holds greater importance and is necessary for activities like securing bank loans.
Padayachy also mentioned that improvements to pensions will be made within the budget framework.
He expressed the government’s commitment to finding a balance between union demands and entrepreneurial proposals and highlighted the existence of a mechanism within the Mauritius Revenue Authority to support struggling businesses with salary compensation.
Business Mauritius had asked for a compensation not exceeding Rs1,000.
