Cabinet is considering an increase to the national minimum wage. However, officials say more consultations are needed first.

The National Minimum Wage Advisory Committee completed a review of the current wage framework. Moreover, it submitted recommendations to Cabinet after consulting multiple sectors.

Director General of Communications Maurice Merchant explained that the committee examined proposals to adjust the current minimum wage. Currently, the rate stands at $9 per hour.

“The committee examined the proposal to increase the national minimum wage from nine dollars,” Merchant said during the briefing.

However, Cabinet decided not to announce a new rate at this stage. Instead, officials opted for further discussions before any changes are implemented.

“We are not telling you today what the proposed increase is,” Merchant said. “Additional consultations and discussions are required on the report’s proposals.”

Officials noted broad agreement that the current wage no longer reflects economic realities. Moreover, rising living costs have made the $9 minimum wage outdated.

Merchant emphasized that the cost of living has increased significantly since the current rate was introduced. Therefore, an update is necessary.

At the same time, Cabinet is considering the impact on businesses, especially smaller employers. Gradual implementation could help them adjust more easily.

“One of the key concerns is the size and pace of a potential increase,” Merchant explained. “A sudden adjustment may be too much.”

The advisory committee suggested a phased approach over several years. For example, one proposal recommends a four-year implementation period.

“This phased adjustment could ease the transition for employers while improving workers’ wages gradually,” Merchant added.

Cabinet will continue consultations with stakeholders before deciding on the final structure and timeline. Moreover, they aim to balance fairness to workers with business sustainability.

Officials stressed that the goal is to ensure wages reflect economic realities. At the same time, they want to support business adaptation to rising labor costs.

Ultimately, the phased approach may allow a smoother increase in wages. Furthermore, it provides a measured solution for both employees and employers.

Cabinet has yet to finalize the minimum wage increase. Discussions are expected to continue over the coming months.