Pradeep Dursun, Chief Operations Officer of Business Mauritius, expressed concerns about the recent increase in the minimum wage and wage compensation in Mauritius.
During a radio show, he suggested that the mechanisms for setting wages should be revised to take into account the cost of living and skills.
He also highlighted the potential negative impact of the wage increase on small businesses, particularly those in labor-intensive sectors such as trade, retail, cleaning, and security.
Dursun questioned whether it would have been more prudent to introduce different minimum wage amounts instead of a uniform minimum wage of Rs 15,000.
He hopes that businesses will not resort to employee layoffs but believes that they may need to scrutinize salary increase requests and fringe benefits due to the additional financial pressure they face.
Dursun also expressed concerns about potential inflation resulting from increased consumption and the lack of control over prices.
Maya Sewnauth, vice-president of SME Chambers, expressed surprise and concern over the minimum wage increase and wage compensation, stating that small businesses are already facing difficulties amid the current economic situation.
She also called for SMEs to be represented separately from large enterprises during tripartite meetings.
Vince Rungasamy, a union negotiator, supported the minimum wage increase and wage compensation and called for government support measures for small businesses.
Economist Rajeeve Hasna highlighted the financial strain on the state and the depreciation of the rupee as contributing factors to inflationary pressures.
Source: Defi Media
