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JAM | Apr 24, 2024

Employers urged to pay above threshold as Cabinet approves minimum wage increases

/ Our Today

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Reading Time: 2 minutes

Employers are being urged make every effort to offer compensation above the minimum threshold as Cabinet approves the increase in the national minimum wage and the minimum wage for security guards.

Effective June 1, the national minimum wage will increase from J$13,000 to J$15,000 per 40-hour work week, while the minimum wage for security guards will be increased from J$14,000 to J$15,000 per 40-hour week.

The increase was affirmed in Parliament on Tuesday, April 23, after Minister of Labour and Social Security Pearnel Charles Jr moved two resolutions: National Minimum Wage (Amendment) Order, 2024 and the Minimum Wage for Security Guards (Amendment) Order, 2024.

It follows the announcement by Prime Minister Andrew Holness during his contribution to the Budget Debate.

The single-time rate for the national minimum wage is set to be increased from J$325 per hour to J$375 per hour for work done by a worker during any period not exceeding 40 hours in any week.

The rate for time and a half is to be increased from J$487.50 to J$562.50 per hour for work done in excess of 40 hours in a week, while double time is to be increased from J$650 to J$750 per hour for work done by a worker on a rest day or a public holiday.

Cabinet Minister Pearnel Charles Jr (Photo: JIS)

The single-time rate for industrial guards will be increased from J$350 per hour to J$375 per hour for work done by the worker during any period not exceeding 40 hours in a week

The rate for time and a half is to be increased from J$525 to J$562.50 per hour for work done in excess of 40 hours in a week, while the double time is to be increased from J$700 to J$750 per hour for work done by a worker on a rest day or public holiday.

The labour minister said the increase does not encompass any adjustments to allowances and insurance benefits.

Employers are being urged to offer their workers compensation that exceeds the minimum threshold.

In the meantime, the following rate will remain:

▪ The Laundry Allowance will remain at J$52.38 per hour;

▪ The Firearm Premium Allowance will remain at J$57.15 per hour;

▪ The Dog Handler’s Premium Allowance will remain at J$39.29 per hour and

▪ The Life Insurance coverage with double indemnity protection and dismemberment coverage will remain at J$3,273.

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