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Sudden wage increases could reduce employment opportunities, JHTA warns
Elections, Latest News, News
September 2, 2025

Sudden wage increases could reduce employment opportunities, JHTA warns

…calls for dialogue on proposed minimum wage adjustments

KINGSTON, Jamaica —The Jamaica Hotel and Tourist Association (JHTA) has joined the Jamaica Chamber of Commerce in urging the Government to engage in consultation on its proposal for a phased increase in the national minimum wage, warning that sudden wage increases can inadvertently result in reduced employment opportunities.

“While we recognise the critical importance of ensuring that Jamaicans earn a fair and sustainable wage, the JHTA strongly urges the Government to engage in meaningful consultation with key stakeholders before finalising any adjustments. Tourism accounts for approximately one-third of Jamaica’s gross domestic product (GDP) and is one of the country’s largest employers. Any shifts in wage policy will therefore have wide-ranging implications for the sector, including employment levels, competitiveness and the affordability of the Jamaican tourism product in a highly competitive global marketplace,” JHTA said in a statement on Tuesday.

Prime Minister Andrew Holness, while speaking at a Jamaica Labour Party mass rally in Old Harbour on Sunday, announced that the national minimum wage would double from $16,000 to $32,000 over the next several years if the JLP returns to power after the general election.

He noted that the first increase would take place in the next budget, which would see the minimum wage at $18,000, then increase gradually after the next few years.

READ:Holness promises to move minimum wage to $18,500 in 2026

However, the JHTA stressed that the Minimum Wage Advisory Commission and the law provide for an established consultative process involving the Government, trade unions, private sector, civil society, and academia. It further encouraged the utilisation of the framework to ensure transparency, fairness and balance in decision-making.

“Failure to follow such a process risks creating economic shocks—not only for businesses but also for workers themselves. Sudden wage increases, without proper dialogue and phased implementation strategies, could inadvertently result in reduced employment opportunities, higher operational costs and increased prices being passed on to consumers,” the association said.

“The JHTA therefore calls for structured dialogue that fully considers the realities of the tourism sector, the broader economy and Jamaica’s long-term competitiveness. Decisions of this magnitude must be grounded in collaboration, data-driven analysis and transparency to ensure that policies designed to uplift workers do not inadvertently weaken the industries that sustain them,” it added.

On Monday, the Jamaica Chamber of Commerce also urged the Government to follow the established consultative process before doubling the country’s national minimum wage, noting that safeguarding Jamaica’s economic stability requires a structured, transparent and inclusive approach.

READ:JCC urges gov’t to follow consultative process before minimum wage increase

Tags:

elections Jamaica Hotel and Tourist Association national minimum wage
{"elections":"Elections", "jamaica-observer":"Jamaica Observer"}
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