THE minimum wage will be increased to $45 per hour or $1800 per 40-hour week as of tomorrow, Minister of Labour and Social Security, Donald Buchanan said. According to a JAMPRESS report, the House of Representatives approved the National Minimum Wage (Amendment) Order 2001 last November, which gave effect to the new national minimum wage. Minister Buchanan, told the House that Cabinet had also agreed to improvements in the minimum wage and fringe benefits for industrial security guards which will also be effective tomorrow.
The increase comes against the background of controversy as various sectors questioned the timing and reasonableness of the decision. Security guards across the island lobbied for a larger increase as well as an earlier implementation date while contracting companies and industrial security firms sought a lower increase.
Addressing these concerns the Minister explained that the Tripartite Minimum Wage Advisory Commission took into consideration certain submissions made by the 14 individuals and groups which appeared before it.
"Factors such as gross domestic product, the current inflation rate, the income tax threshold which has increased from $10,400 to $120,432 over the last 10 years, and the concern that too high an increase in the minimum wage for industrial security guards could result in massive layoffs in the security industry were considered." he said.
Minister Buchanan said however that while he was aware of the concerns in terms of protracted impact of increases on operational costs, employers could be assured that improvements would redound to the benefit of their enterprises.
The minimum wage for industrial security guards will move from $50.50 per hour ($2,020 per week) to $70.70 per hour($2,828 per week); laundry allowance from $10.00 to $15.00 per hour for each hour of work done up to 40 hours per week; firearm premium allowance from $10.00 to $15.00 per hour for each hour of work done up to 40 hours per week; dog holders premium allowance form $5.00 to $10.00 per hour for each hour of work done up to 40 hours per week; life insurance from $800,000 to $1 million with double indemnity protection, both during and outside hours of work and including accidental death or dismemberment.
