THE Andrew Holness-led Administration’s plan to double Jamaica’s minimum wage to $32,000 per week has stirred warnings of layoffs and closures from business groups. Yet for the workers who have long struggled at the bottom of the pay scale, and for some entrepreneurs who depend on them, the phased increase is being greeted with optimism and a call for deeper reforms.

Prime Minister Holness confirmed that the increase will be introduced gradually over five years, beginning with a first adjustment to $18,500 per week in the upcoming budget. It follows two steep hikes in just three years — from $7,000 in 2021 to $16,000 in 2023 — and is meant to move Jamaica closer to a wage that workers can actually live on.

For the Jamaica Household Workers’ Union (JHWU), which has campaigned for decades for better pay, the announcement represents overdue recognition of their plight.

“Domestic workers are living in multifaceted poverty; it’s a trap of unrelenting deprivation. There is lack of care, protection, proper wages, housing, and [it is a case] where violence in the workplace is a reality,” General Secretary Shirley Pryce told the Jamaica Observer, hailing the move by the prime minister as “a step in the right direction”.

“For years, the JHWU has argued that the minimum wage is insufficient for a dignified life. A living wage is needed for a decent standard of living — covering essentials like housing, food, utilities, transportation, education and, most importantly, health care,” she added.

Cordell Williams Graham, president of the Young Entrepreneurs Association, says the phased wage hike could strengthen motivation and boost small business patronage if paired with the right support measures.

Pryce welcomed the phased approach as “workable”, stressing that gradual increases will give employers time to adapt.

“It would still require careful planning and consideration of the economic implications, which includes inflation rates, cost of living adjustments, and economic growth. However, the phased approach could make it manageable if aligned with economic growth and the realities of the majority of workers,” she said.

She also argued that higher wages can help solve morale and retention problems facing many employers.

“We also think the increased wages could lead to improved employee morale and productivity, which will benefit both domestic workers and their employers,” she said.

While business lobby groups such as the Jamaica Chamber of Commerce (JCC) and MSME Alliance warn of potential job losses and lament a lack of consultation, younger entrepreneurs are trying to shift the conversation.

President of the Young Entrepreneurs Association (YEA), Cordell Williams Graham urged business leaders to look beyond the immediate costs.

“A business is not a business without people — otherwise it’s a job — and any well-thinking business person is always thinking about how they can better compensate their staff. However, as with any change, the first inclination is to process it through a negative lens and see it as a cost which could result in job losses,” she told the Business Observer.

But she stressed the potential upsides.

Shirley Pryce, general secretary of the Jamaica Household Workers’ Union, welcomes the phased minimum wage increase but stresses that stronger social protections are needed to safeguard workers.

“Better payment of workers is a key factor in driving motivation and productivity, which is very welcomed as entrepreneurs do struggle with finding and retaining good talent, and hiring costs can be prohibitive as well. Additionally, with more disposable income for some, this could result in increased patronage of small businesses,” she continued.

Both the JHWU and YEA also noted that wages alone won’t secure Jamaica’s future.

The YEA has recommended a menu of relief measures to help small firms stay afloat including procurement contracts reserved for MSMEs, temporary tax credits, low-interest loans via DBJ and EXIM Bank, and energy subsidies to ease electricity costs. Just this week, the Development Bank of Jamaica (DBJ) announced the launch of its $2-billion Opportunities for Resilient Businesses, Innovation & Transformation (ORBIT) financing facility, which it says will provide affordable financing of up to $30 million for MSMEs in agriculture, manufacturing, health, and the creative industries, thereby supporting their efforts to modernise, expand, and access export markets.

Meanwhile, the JHWU is calling for stronger protections and training.

Among its proposals are the ratification of ILO Convention 190 on violence and harassment in the workplace, support for the Household Workers Training Institute, and a public campaign to educate employers and employees on their rights under the law. Pryce also wants social protection programmes such as health care, education support, and affordable housing strengthened.

At $16,000 per week, Jamaica’s current minimum wage works out to $400 per hour — well below its regional peers. In Barbados the minimum wage is BBD 10.50 per hour, equivalent to about $846, while in Trinidad and Tobago it stands at TTD 20.50 per hour, or roughly $489. Once Jamaica’s phased increases reach $32,000, lifting the hourly rate to $800, it will surpass Trinidad’s floor but remain just shy of Barbados’s.

The phased hike marks the boldest attempt yet to narrow the gap between minimum and living wages at home.

Still, for Pryce, the challenge is ensuring workers remain at the centre of the conversation.

“Every year there must be close monitoring of inflation. And there must be consultation between the employers, the Government, and the unions representing household workers, before making decisions as there must be inclusion and equality in consideration of the needs of all groups affected,” she said.