Labour Minister Soodesh Callichurn responded to a question from opposition MP Reza Uteem in the National Assembly. Around 119,000 workers out of 366,000 are affected by the wage readjustment. It targets those earning less than Rs 30,000. The readjustment of a national minimum wage to Rs 16,500 by January 2024 had become imperative. Soodesh Callichurn noted that this increase from Rs 11,575 to Rs 16,500, representing an increase of Rs 4,925 (42.5%), has caused a significant distortion in the distribution of wages. He added that many workers are now earning Rs 16,500 per month.
The minister also explained that during the first revision of the national minimum wage in 2020, the relativity adjustment was based on sectors. This year, the revision equalized the wages of various job categories across sectors, thus establishing a common minimum wage for all types of work. This is why it is now necessary to adjust the relativity of wages based on occupations rather than sectors.
He revealed that his ministry has reviewed a consultant's report on salary relativity. And the ministry is conducting a complementary survey in twenty-two employment sectors. “According to Business Mauritius, about 48% of employers have already made the adjustment of salary relativity. The preliminary results of the survey conducted by my ministry reveal the same trend,” he added.
Finally, his ministry is currently examining the modus operandi, in consultation with other bodies, for the implementation of the results of the consultant's report and the investigation.
