A position paper on progressing Bermuda’s minimum hourly wage was introduced to the Senate.

Leslie Robinson, the Junior Minister of Economy and Labour and Public Works, said that the Government supported the paper’s proposal to progress the statutory minimum hourly wage rate every two years by the annual average rate of inflation, using the Consumer Price Index as the indicative measure, capped at 2.5 per cent a year.

She said: “Using this methodology, the newly proposed statutory minimum wage rate to take effect in 2025 will be between $16.81 and $17.23.“

The first statutory minimum hourly wage rate for Bermuda was established on June 1, 2023 by the Employment (Minimum Hourly Wage) Order 2023, which set the rate for employees in Bermuda at $16.40.

Ms Robinson said: “While the establishment of a minimum hourly wage in Bermuda was a significant step towards ensuring fair compensation for employees and the reduction of income equality, a further step needs to be taken to assure that employees can maintain a reasonable standard of living and their purchasing power is not diminished while the costs of everyday goods and services rise.

“The position paper details the Government’s intention to enhance the wage floor over time, why the CPI is the most appropriate method to utilise to progress the statutory minimum hourly wage rate, those most likely to be impacted by the progression of the statutory minimum hourly wage rate and the role that the Wage Commission and the Government will play in the monitoring and evaluation of the continued progression of the statutory minimum hourly wage rate in Bermuda.”

John Wight, a Governor-appointed senator, questioned why the adjustments were to be made every two years rather than annually.

He also asked whether, if there was an increase in 2.5 per cent the first year and 2.5 per cent the following year, the increase implemented would be 2.5 per cent or a cumulative 5 per cent.

Ms Robinson responded that the recommendation was in accordance with what happens in other jurisdictions and that in the example given by Mr Wight, the increase would be “a maximum of 5 per cent”.