Minimum hourly wage to increase with inflation
Bermuda’s minimum hourly wage is expected to be increased every two years, the Minister of Economy and Labour said today.
Jason Hayward presented to the House of Assembly a position paper on progressing the pay floor.
The existing minimum wage of $16.40 was established last June.
Mr Hayward told MPs: “The Government supports the position paper’s proposal to progress the statutory minimum hourly wage rate every two years by the annual average rate of inflation, utilising the Consumer Price Index as the indicative measure, capped at 2.5 per cent per year.
“Using this methodology, the newly proposed statutory minimum wage rate to take effect in 2025 will be between $16.81 and $17.23.”
The minister added: “Since the minimum hourly wage is intended to help workers afford basic living expenses, by linking the minimum hourly wage increases to the CPI, albeit ‘capped’, the minimum hourly wage can be adjusted to better keep pace with inflation.”
Mr Hayward said: “When drafting this position paper, the views of the Wage Commission were sought and considered and agreement on the intention to progress the minimum hourly wage rate by linking it with the CPI was reached.
“As the Government continues to strengthen the protections afforded to employees within Bermuda, adopting a transparent and consultative process for implementing and monitoring the minimum hourly wage adjustments will foster inclusivity and avoid the erosion of the minimum hourly wage rate and to allow employees the opportunity to maintain income equality.”
Responding to questions from Scott Pearman, a One Bermuda Alliance MP, the minister said it was “theoretically” possible under the legislation for the minimum wage to go down if the cost of living fell, but that it was unlikely.
Mr Pearman also asked about caps to the adjustment, which Mr Hayward said could go to a cumulative maximum of 5 per cent, or 2.5 per cent for each year in a two-year period.
• To see the full position paper, see Related Media
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