No Salary Increases for Private Sector Employees in August 2024

Private sector employees were taken aback this month as they discovered upon reviewing their latest pay slips that they had not received any salary increases. Over the past few days, many private companies have begun disbursing end-of-month salaries. Despite official announcements from the Ministry of Labour and the Ministry of Finance asserting that salary increases are mandated by law, these adjustments were not implemented this month.

While some employees were informed in advance about the lack of raises by their employers, others were made aware only after receiving their pay statements.

Companies are currently awaiting the official publication of new salary regulations before they can proceed with the promised increases.

Over three weeks have passed since the press conference held by Ministers Callichurn and Padayachy, yet the required Remuneration Orders have not been published in the Government Gazette, leaving employees in limbo and companies anxious about the financial burdens they face.

According to the Ministry of Labour, publication in the Government Gazette is merely an administrative formality.

Consequently, companies should not use this delay as an excuse to postpone the salary adjustments that were intended to take effect in August.

However, businesses argue they are not obligated to implement these increases immediately, choosing instead to wait for official confirmation.

As a result, many private sector employees expecting a raise found nothing reflected in their end-of-month wages.

For many companies, these salary adjustments pose a significant financial challenge coming September, they may face the dual burden of paying current month wages while also addressing any retroactive pay owed for July and August.

The Ministry of Labour emphasizes that all businesses must adhere to legal regulations concerning employee remuneration.

An official from the ministry reiterated that companies failing to implement the required salary adjustments may be deemed non-compliant and could face legal action under the Employment Relations Act.

Yet, the absence of the remuneration orders raised questions about the delay, especially when the Ministry insisted that it is simply a routine procedure.

Last Thursday, August 22, the Ministry publicly announced the new salary scales, catching numerous companies off guard.

In various sectors and for many positions affected by the new regulations, employees are already earning wages significantly above those newly proposed.

This has led to heightened uncertainty among workers regarding whether their salaries will be adjusted in line with the Finance Minister’s announcements.

The employer organization, Business Mauritius, stated that clarity on how to proceed would only come once the regulations are published.

Anil Currimjee, the president of the organization, emphasized that while the intention to support businesses is commendable, imposing additional financial burdens without subsequent relief would not be prudent.

He noted that the situation is becoming increasingly complex as the prospect of retroactive payments would be “serious difficulties for companies,” particularly small to medium-sized enterprises and sectors employing large workforces.

Furthermore, companies in financial distress have been encouraged to seek assistance from the Mauritius Revenue Authority.

However, such support has yet to be made available, hindering companies from planning their budgets effectively.

At this point, the promised assistance appeared to be nothing more than a talk without tangible implementation.

For many employees, while a salary increase could provide much-needed additional income, there is a growing fear that some businesses, unable to cope with new financial responsibilities, may resort to laying off staff or tightening work conditions.

“This could force some companies to let employees go or impose tougher working conditions,” warned one employee.

Source: l’Express