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Minimum wage increase takes effect today
The increases will see the national minimum wage moving from $13,000 to $15,000 per 40-hour work week.
News
June 1, 2024

Minimum wage increase takes effect today

Scores of low-income earners and security guards will see increased wages starting today as the new national minimum wage takes effect.

Two orders that will increase the national minimum wage and the minimum wage for industrial security guards were approved by the House of Representatives on April 23.

These are the National Minimum Wage (Amendment) Order, 2024, and the Minimum Wage Industrial Security Guards (Amendment) Order, 2024.

They were piloted by Minister of Labour and Social Security Pearnel Charles Jr.

The increases will see the national minimum wage moving from $13,000 to $15,000 per 40-hour work week.

The minimum wage for industrial security guards will increase from $14,000 to $15,000 per 40-hour work week.

Providing further details on the increases, Charles Jr said the single-time rate is to move from $325 to $375 per hour for work done during any period not exceeding 40 hours in any week.

He also told the House that the time-and-a-half rate is to be increased from $487.50 to $562.50 per hour for work done in excess of 40 hours in any week, and double time is to move from $650 to $750 per hour for work done during any period on a rest day or on a public holiday.

In relation to the minimum wage for industrial security guards Charles Jr said the single-time rate is to increase from $350 to $375 per hour for work done during any period not exceeding 40 hours in any week.

He pointed out that the time-and-a-half rate is to move from $525 to $562.50 per hour for work done in excess of 40 hours in any week; and double time is to be increased from $700 to $750 per hour for work done during any period on a rest day or public holiday.

According to Charles Jr, the wage increase for industrial security guards applies solely to the basic rate.

“As such, this increase does not currently encompass any adjustments to allowances and insurance benefits. Subsequently, the prevailing rates will remain,” said Charles Jr as he noted that laundry allowance will remain at $52.38 per hour, firearm premium allowance at $57.15 per hour, dog handler’s premium allowance at $39.29 per hour, and life insurance coverage with double indemnity protection and dismemberment coverage at $3,273,000.

The minister reiterated that the minimum wage stands as a basic standard and urged employers, particularly those with the means to do so, to offer their workers compensation that exceeds the minimum threshold, while applauding those already doing so.

“We should all be aware of the challenges faced by the workforce and demonstrate a resolve in creating a decent working environment and offer support to advance the sustainable development and productivity of our labour force,” said Charles Jr.

He reiterated the commitment to upholding the principle of fairness, fostering economic stability, and promoting the well-being of all stakeholders within the local labour force.

While welcoming the increase, during the April 23 sitting of the House, Opposition spokeswoman on foreign and regional affairs, Dr Angela Brown Burke, called for greater stakeholder dialogue.

The People’s National Party (PNP) had charged that the decision to increase the minimum wage, and the wage for security guards, was done without consulting the Minimum Wage Advisory Commission or stakeholders.

According to the PNP, while it is committed to advocating a liveable wage for all Jamaicans, the way the increase was decided on failed to “ensure that the minimum wage reflects the various factors affecting the working public’s quality of life, including the cost of living and inflation”.

“The PNP firmly believes that consultation with stakeholders must be the standard practice in determining minimum wage adjustments. Without such consultation there is a risk that political tactics and expediency may drive government decisions regarding the minimum wage, potentially neglecting the true needs of the working population,” the party said in a release.

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