Businesses will adjust to surprise 15% minimum wage increase, says PSOJ
Published:Friday | March 22, 2024 | 12:31 PMKimone Francis/Senior Staff Reporter -
President of the Private Sector Organisation of Jamaica (PSOJ) Metry Seaga says the increase in the national minimum wage from $13,000 to $15,000 per 40-hour work week has come as a surprise but is a change its membership will adjust to.
The minimum wage for industrial security guards is to also move, but from $14,000 to $15,000 per week.
This is to take effect June 1. The minimum wage was last revised a year ago.
Prime Minister Andrew Holness told the nation yesterday that the upward adjustment is to help Jamaicans at the lower rungs of the job ladder battle inflation, which stands at 6.6 per cent.
Holness, who was making his contribution to the 2024-2025 Budget Debate, which began last week in the House of Representatives, said this represents a 15 per cent increase.
“We thought about it carefully and thought it was necessary to do this to keep the working class and our poorest abreast with inflation,” said the prime minister.
He said a significant number of Jamaica’s working poor are having a difficult time navigating their daily circumstances, an issue that was recurrent on the campaign trail leading up to the just-concluded local government elections.
On Thursday, minutes after Holness’ announcement, the PSOJ head said the upward adjustment was “quick” and unexpected.
“I never expected it so soon after the last increase. However, if that’s what the numbers say that people need as a minimum living wage, then we will adjust to it,” Seaga told The Gleaner.
He said the adjustment may affect small businesses but noted that a poll of the PSOJ membership will be done to see how this will affect them.
“I think most people are already earning that figure. So I don’t think there is too much adjustment that will need to be made,” Seaga added.
Meanwhile, Michael Leckie, president of the Small Business Association of Jamaica, told The Gleaner that a canvass of the organisation’s membership will be done to determine the likely impact.
Holness, during a similar Budget presentation a year ago, announced a 44 per cent increase for minimum wage earners, noting that this was the largest percentage increase in 20 years.
The national minimum wage, at that time, stood at $9,000 per 40-hour work week and was increased to $13,000.
Minimum wage for industrial security guards moved from $10,500 per week to $14,000.
In announcing the latest adjustment, Holness said Jamaicans at the lower end of society are having a hard time making ends meet.
“So as we present this national Budget, we looked at how we can support every sector of the society, and I believe that the Budget presented has touched almost every sector of the society.
“We have touched pensioners. We have touched public-sector workers. We have touched people who want to own homes. We’ve touched the poor. We’ve touched the vulnerable. We have done as best as we could without being fiscally reckless. I believe we have presented to the people of Jamaica a good Budget,” Holness said.