S.S.B Actuary: Salary Increases Will Cause Inflation

Hernando Montas

While employers in the minimum wage bracket have been clamoring for an increase, S.S.B’s Actuary, Hernando Montas explained that because everything in economics is linked, an increase in salaries will inevitably affect the cost of goods and services.

Hernando Montas, Actuary, S.S.B.

“Now workers are expecting more pay, claiming higher salaries to keep the cost of living the same. The C.P.I. (Consumer Price Index) is going up. Last year it was one percent. This year it will be more than three percent or four percent, and this will be a cycle for one or two or three years only until it comes down to one percent. So the next two years, there will be some salary increases and that might have an impact on social security.”

Marion Ali

“What about the increase on minimum wage. Do you see that having an impact as well?”

Hernando Montas

“The minimum wage will very likely – there will be – the unions would like to increase the minimum wage. Alright, the minimum wage, the three thirty-five right now will go up, but then the two wage bands should be eliminated because it doesn’t make any rationale to keep a wage band of fifty-five (cents) per week or ninety (cents) per week, which are the first two, when the minimum wage goes up. So it should go to one-thirty and they will be able to get higher pensions also.”