[St Vincent and the Grenadines] Government considers 20% minimum wage hike

The government of St Vincent and the Grenadines has announced that it is considering a 20 per cent minimum wage increase to ensure that no worker earns less than EC$50  daily, Loop News reports.

In addition, the Gonsalves administration wants to increase the length of paid maternity leave.

The wage review reportedly coincides with the Caribbean Society for Human Resource Professionals report from November 2023 that found the island was among the lowest-paying countries in the Caribbean, with 73.3 per cent of salaries being below the average market value across the region.

Prime Minister Ralph Gonsalves stated that the government is awaiting the final recommendation of the Wages Council but was expecting some pushback from some employers.

The prime minister said he has secured the full support of the Cabinet on the issue and that there would be an announcement during the budget next week.

“I want to say, disappointingly, a number of employers have not participated,” Mr Gonsalves said, during his weekly radio programme on the state-owned NBC Radio. He added that the wage review process has taken place over several months.

He said that a minimum wage is not an indication of how much the government is saying an employee must be paid.

“We’re saying that that is the least that an employer can pay you. That is not for an employer to keep you at minimum wage. You can get above minimum wage. What you can’t do is to get below minimum wage.”

Mr Gonsalves reportedly said that this is the fourth time his government has increased minimum wages since coming to office in March 2001. The rate rose just once in 16.5 years under the main opposition New Democratic Party (NDP).

He said the Wages Council was considering a broad increase of 20 per cent of the minimum set in 2017 when the last adjustment was made.

“And that for the call centre workers, because they came on afterwards, to do theirs 15 per cent. Because I think they came in 2020 or thereabouts — 2019, 2020,” the prime minister said. He added that the Wages Council has proposed setting the minimum wage at a level where no worker makes less than EC$50 a day.

“But even when they did the 20 per cent, some were falling below that. So, I say but if that is what you’re recommending, let us have something which you think is reasonable, don’t just put 20 per cent. The number is higher than that to carry you to a particular point, you do it.

“So, I think we’re going to see a fairly - a reasonable jump,” Mr Gonsalves said, adding that the government was anticipating that some employers would say the new minimum wages are too high.

Mr Gonsalves also reportedly announced that his government wants to give more time for maternity leave.

“When we came to office, for the ordinary worker, I am not talking about the civil servants, was four weeks. We carried it to eight weeks. But it should be more than eight weeks so that the NIS (National Insurance Services) will pay 65 per cent and the employer will pay 35 per cent?”

The prime minister said an employer would say a woman who wants eight weeks’ maternity leave would have to take four of them without pay.

“So, all you do is get 65 per cent from the NIS, if in fact your employer’s making the NIS payments,” he said.

Source: Loop News

(Quotes via original reporting)

The government of St Vincent and the Grenadines has announced that it is considering a 20 per cent minimum wage increase to ensure that no worker earns less than EC$50  daily, Loop News reports.

In addition, the Gonsalves administration wants to increase the length of paid maternity leave.

The wage review reportedly coincides with the Caribbean Society for Human Resource Professionals report from November 2023 that found the island was among the lowest-paying countries in the Caribbean, with 73.3 per cent of salaries being below the average market value across the region.

Prime Minister Ralph Gonsalves stated that the government is awaiting the final recommendation of the Wages Council but was expecting some pushback from some employers.

The prime minister said he has secured the full support of the Cabinet on the issue and that there would be an announcement during the budget next week.

“I want to say, disappointingly, a number of employers have not participated,” Mr Gonsalves said, during his weekly radio programme on the state-owned NBC Radio. He added that the wage review process has taken place over several months.

He said that a minimum wage is not an indication of how much the government is saying an employee must be paid.

“We’re saying that that is the least that an employer can pay you. That is not for an employer to keep you at minimum wage. You can get above minimum wage. What you can’t do is to get below minimum wage.”

Mr Gonsalves reportedly said that this is the fourth time his government has increased minimum wages since coming to office in March 2001. The rate rose just once in 16.5 years under the main opposition New Democratic Party (NDP).

He said the Wages Council was considering a broad increase of 20 per cent of the minimum set in 2017 when the last adjustment was made.

“And that for the call centre workers, because they came on afterwards, to do theirs 15 per cent. Because I think they came in 2020 or thereabouts — 2019, 2020,” the prime minister said. He added that the Wages Council has proposed setting the minimum wage at a level where no worker makes less than EC$50 a day.

“But even when they did the 20 per cent, some were falling below that. So, I say but if that is what you’re recommending, let us have something which you think is reasonable, don’t just put 20 per cent. The number is higher than that to carry you to a particular point, you do it.

“So, I think we’re going to see a fairly - a reasonable jump,” Mr Gonsalves said, adding that the government was anticipating that some employers would say the new minimum wages are too high.

Mr Gonsalves also reportedly announced that his government wants to give more time for maternity leave.

“When we came to office, for the ordinary worker, I am not talking about the civil servants, was four weeks. We carried it to eight weeks. But it should be more than eight weeks so that the NIS (National Insurance Services) will pay 65 per cent and the employer will pay 35 per cent?”

The prime minister said an employer would say a woman who wants eight weeks’ maternity leave would have to take four of them without pay.

“So, all you do is get 65 per cent from the NIS, if in fact your employer’s making the NIS payments,” he said.

Source: Loop News

(Quotes via original reporting)