Business Mauritius Expresses Concerns Over Wage Relativity Adjustment

Business Mauritius, an organization representing approximately 1,200 companies, has raised significant concerns regarding the Wage Relativity Adjustment issued by the government, which will take effect on July 1, 2024. The association described the expected impact of this adjustment as “substantial,” stating that many businesses will find it challenging to cope with the proposed increase.

While Business Mauritius has reviewed the new wage scales recently published on the Government Information Service (GIS) website, it is still awaiting the official regulations that will enact these measures into law.

These regulations are crucial for providing clarity and legal backing to the recent announcements regarding salary adjustments.

Moreover, the association has indicated that it currently lacks information about potential mitigating measures suggested by the authorities.

Business Mauritius has already formally requested this information from the Ministry of Finance.

In remarks to the press this week, Anil Currimjee, the president of Business Mauritius, highlighted the inefficacy of relief measures currently proposed, arguing that they do not provide a sustainable solution for businesses facing rapid and significant payroll increases.

“It is counterproductive to impose additional burdens on companies that cannot absorb them and then extend assistance,” Currimjee stated.

“This is not a sustainable economic model.”

Currimjee also pointed out that with August already nearing its end, the requirement for retroactive payment increases poses “real challenges for businesses,” particularly for small and medium-sized enterprises (SMEs) and labor-intensive sectors.

He emphasized the importance of including productivity and value addition in discussions about wage determination, asserting that salary considerations should not be framed as a political issue.

“The workforce is fundamental to macroeconomic principles and must be treated as such,” he remarked.

Furthermore, Business Mauritius is advocating for alignment between minimum salaries for graduates and the qualifications required for various positions. This alignment, they argued, is essential to prevent distortions in the labor market.

Source: Le Mauricien