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Proposed minimum wage; poverty line net SRD 12,000

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The SRD 20 minimum hourly pay must be raised to a minimum of SRD 35 and a maximum of SRD 38.50. This is the National Pay Council’s recommendation (NLR). According to the government, a family of four—two adults and two children—lives below the poverty threshold at SRD 6,000 net. The net poverty level for a household is over SRD 12,000, according to calculations made by the Ministry of AWJ’s Poverty Line Committee. The government provides SRD 1,800 per month to socially disadvantaged households as part of the social program.

Chairman Wonnie Boedhoe gave the advise to Minister Steven Mac Andrew of Labour, Employment, and Youth Affairs on Wednesday. The government gathering that will make the final decision next week also heard a presentation yesterday. On February 1st, the new minimum wage must go into force. The advise also considers an employee’s need for money as well as the ability of businesses to pay. The guidance has also been updated with data from the General Bureau of Statistics (ABS). The NLR suggests using the estimated per-person poverty line.

Value added tax (VAT) introduction’s effects cannot yet be predicted. Therefore, the NLR suggests that the minimum hourly wage be recalculated in the second half of this year and that, if required, a new hourly wage be determined right away. The ABS was able to determine from a limited study of the basic food package that 90% of net income is currently spent on food, non-alcoholic beverages, utilities, transportation, and dwelling rent. The basic food package has product substitutions as well. People purchase the less expensive model of the same thing.

The goal of minimum wages is to safeguard workers from too low pay. The purpose of minimum wage regimes should not be to replace or replace other measures in general social and employment policies, but rather to complement and reinforce them. The NLR states to alleviate income and labor market disparities, a variety of actions can be implemented, such as social transfers, employment-promoting laws, and fostering an environment that supports sustainable enterprise.

 

 

 

 

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