Following pressure from trade unions and civil society, the $60,000 National Minimum Wage Order has been signed by Labour Minister, Joseph Hamilton and gazetted.
According to the Order, private sector employees should not be paid less than $60,147 per month. The order takes effect from July 1, 2022. The change in the National Minimum Wage comes approximately five years after the last one, which took effect on January 1, 2017. At that time the rate moved from $34,500 to $44,200.
The order signed by the minister also states that employees are not required to work additional hours for the new increase. The order reminded employers that the work week shall remain 40 hours and not exceed 5 days per week. Additional work beyond the regular working hours will be treated as overtime and calculated as set out in the Factories (Hours and Holidays) Act. Employers breaching the agreement will be found liable and face possible jail time.
Two weeks ago, President Irfaan Ali announced Cabinet’s approval of the recommendation of $60,000 per month as the national minimum wage. “The Cabinet has agreed with the recommendation of the tripartite group and we are in support of the minimum wage that is going to be established, that is the $60,000 minimum wage. We are friends of the workers. We are not enemies of the workers. We want what is best for the workers,” Ali said in the feature address at the 74th commemoration of the Enmore Martyrs at the Enmore Monument.
This had reflected a change in an earlier position by the President that a study first had to be submitted by Hamilton.
The hike in the minimum wage will benefit close to 10% of private sector employees. The issue has come in for more scrutiny of late in light of the rising cost of living, including higher food prices. The announcement of the approval was welcomed by the Private Sector Commission (PSC) and the Federation of Independent Trade Unions of Guyana (FITUG). PSC Chairman Paul Cheong said the private sector was in full support of the hike and during consultations with members there was unanimous agreement.
He explained that not only would the increase be beneficial to persons earning less than the $60,000 but employers also. “It must be seen as an investment in their employees. This increase will serve to motivate and improve the quality of service a business offers. You will see the benefits in the long term,” Cheong said. He also cited the need for a periodic review of the national minimum wage limit. The PSC Chairman pointed out that with the steady rise in the cost of living, a review should be done to ensure salaries are livable for employees.
Earlier this year, the Labour Ministry announced that based on a discussion of the minimum wage by the National Tripartite Committee, it was “unanimously agreed that it be moved to $60,000 GYD.” With the trade unions and private sector both giving their blessings, the matter was taken to Cabinet for deliberations. In a recent statement, civil society group, Article 13, called for an interim hike to $75,000 per month. It had cited the rising cost of living as justification for their proposed sum.
Trade unions at last month’s Labour Day observances renewed calls on the government to move ahead with the implementation of the increase.
