Minimum Wage Increases to Rs 17,110

Beginning at the end of January, the minimum wage in Mauritius will rise to Rs 17,110 per month, up from the current Rs 16,500. This increase of Rs 610 was announced in December and is part of the annual wage review aimed at countering inflation and preserving workers’ purchasing power.

The new minimum wage will take effect with the salary payments made at the end of January.

This adjustment means that no full-time employment can be offered below Rs 17,110 per month.

In order to implement this change, the National Minimum Wage (Amendment) Regulations 2025 will be promulgated this week.

The decision to raise the minimum wage is primarily intended to address the impacts of inflation and help maintain the financial stability of workers across all sectors of the economy.

During discussions about a potential bonus equivalent to a 14th month’s salary for employees earning less than Rs 50,000 per month, Business Mauritius—an organization representing employers—raised concerns about the timing of an additional wage compensation.

They argued that businesses were already bearing the financial burden of the exceptional 14th-month payment, which is designed to assist employees at the year’s end.

Despite these concerns, the government has decided to proceed with the wage adjustment.

This increase will apply uniformly across all industries and marks a significant milestone since the introduction of the minimum wage in Mauritius in January 2018.

The initiative was part of efforts by Prime Minister Pravind Jugnauth’s administration to enhance worker rights and address economic inequalities, ensuring that vulnerable populations receive a decent income.

At the time of its launch, the minimum wage was set at Rs 9,000 per month.

The introduction of the minimum wage generated diverse reactions; labor unions welcomed it as a step towards greater social justice, while some employer organizations expressed fears regarding its potential impact on business competitiveness, especially within labor-intensive sectors like textiles and tourism.

Since its inception, the minimum wage has undergone regular revisions to reflect changes in the cost of living and inflation rates.

This ongoing process aims to safeguard workers’ purchasing power while aligning wage policy with current economic realities.

An important question now arises: Will the increase in the minimum wage to Rs 17,110 affect the guaranteed minimum income, which increased from Rs 18,500 to Rs 20,000 starting last July?

It is noteworthy that the Mauritius Revenue Authority supplements the income of those earning the minimum wage to ensure they reach the guaranteed minimum.

As of now, authorities have not provided a response regarding this issue.

Source: Defi Media