$5 Minimum Wage Takes Effect; What are the Implication?  

It took effect on January first, and will see those working particularly labour-intensive jobs benefit. Increasing the minimum wage from three dollars and thirty cents to five dollars an hour was among the many manifesto promises of the Briceño administration. And although there has been concern about its implications from the private sector, there were several rounds of consultations ahead of its implementation. Minister of State in the Ministry of Finance, Christopher Coye appeared on Open Your Eyes Morning Show today and shared his view on the minimum wage adjustment during a period of inflation.

Christopher Coye

Christopher Coye, Minister of State, Finance

“There was a minimum wage task force of which the chamber was a member of the task force. They made their recommendations; I think the Ministry of Labor had engaged a consultant to assist in what process would be undertaken to implement the minimum wage adjustment. It was a PlanBelize manifesto commitment – just how it would be implemented was not spoken of in the manifesto. So that type of engagement was taken on and consultation taken on, but ultimately, the Ministry of Labor made its recommendation and cabinet made its decision. There are economic views with respect to the extent and the approach taken and we can have certainly discussions on that all day long and you might be surprised where my position is on it, but certainly that decision has been taken. The reality is from a fiscal standpoint, it is what you would call an inflationary action in a time of high inflation so the jury is out as to what will be the impact of the implementation of that adjustment. And I think that is what the chamber has spoken to; their representative has said we have to wait and see what will be the impact. But that is, timing-wise, a concern as far as its implementation and dramatic implementation.”