Employers and Employees Polled on Proposed $5 Minimum Wage

Juan Ramirez

And employers aren’t the only ones being consulted. Employees are also being asked for their input on the framework that is being developed. According to Ramirez, P.P.F.’s final submission will also guide the government on when and how minimum wage increases should be implemented for years to come.

Juan Ramirez, Senior Analyst, P.P.F. Capital

“Through the survey we have seen a lot of employees, we have asked them what industries they are in, their ages, the specific demographic results, I can’t speak o right now. But, we are getting a diverse array of opinion. We asked employees what you think the new minimum wage to be. Do you think you should get a phased approach for your industry; will you be ok with that? I think there is a diverse array of opinions on all these questions.”

Paul Lopez

“How does a study like this and the increase of minimum wage affect other pay scales within these industries? Does it have perhaps a rippling effect where other at different levels requests also an increase, putting an added pressure on employers?”

Juan Ramirez

“That’s a very real concern. Stake holders have brought that up in our consultations and it has shown elsewhere that when you have a minimum wage increase what you will find is that people that today are at a five-fifty, six, maybe even six fifty will also ask for a raise in line with hat increase at the lower end. What you refer to as a rippling effect. It is a very real potential. We are doing our best to provide the task force and the government with a number, a reasonable estimate of what we think the rippling effect may be, because that also will be additional cost to the employers right.”

As we said, the final decision on the implementation of a five dollar minimum wage will rest with Cabinet. Prime Minister John Briceño has indicated that the increase will be implemented in January of 2023.