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The Ministry of Border Control, Labour & Culture has released the Minimum Wage Report during a press briefing held on Wednesday, 6 March.

The Minimum Wage Advisory Committee (MWAC) convened in January 2023 and was given the mandate to: investigate the adequacy of the current minimum wage; to research and collect a wide range of data to consider the impact of new minimum wages at various wage points; to consider whether the country should establish various minimum wages for specific industries/sectors/age groups; and to provide the agreed findings and recommendations in a final report.

13031. MWAC sought the expertise of the International Labour Organization (ILO), which offered technical support and advice during this process. Some of the feedback received from the ILO included that as of 2022, the minimum wage level had lost 18% of its purchasing power since its implementation in 2016, and in 2023 this was likely to increase to 31%. It also outlined that the current minimum wage of $6 is about 28% of the average wage of the population, which is considered low by international standards, especially for a high-income country. The ILO suggested that the minimum wage should be increased, and cautioned that adjustments should be gradual.

In addition to the advice of the ILO, the Committee undertook a long period of information-gathering through efforts undertaken by the Economics and Statistics Office (ESO) and through various consultation efforts; a final report was completed in the fourth quarter of 2023 and provided five (5) main recommendations:

1. 1. 1. A new minimum wage of CI$8.75 per hour;
      2. A phasing out of the gratuity contribution to the base minimum wage for employees in the hospitality industry on approved gratuity schemes. The current contribution of 25% is to be reduced by 5% annually;
      3. Continuation of the household in-kind credits;
      4. A Minimum Wage Adjustment Mechanism, intended to systematically adjust the minimum wage using the Consumer Price Index inflation as a base every 2 years, beginning in July 2025.
      5. A student minimum wage of CI$6.00 for persons 12 to 17 years old, to encourage employers to hire young Caymanians instead of taking out Work Permits for certain types of labour, and to also encourage young Caymanians to enter the labour force early.

The Report also outlined economic implications which would affect employers and employees. It should be noted that the Report had adjustments from July 2024, a full phasing out of the gratuity contribution by July 2029, and the implementation of the Minimum Wage Adjustment Mechanism by July 2025, however, these recommended timelines will have to be adjusted should the Committee’s recommendations be accepted and approved for implementation.

The public is invited to review the Minimum Wage Report which is available for download on the Ministry of Border Control, Labour & Culture website Home | Border Control and Labour (gov.ky) or on Gov.ky

The Ministry will be receiving and collating feedback on the report and its recommendations for review by Cabinet next month. Persons can email their Report insights or feedback to minimumwage@gov.ky on or before 12 midnight on Tuesday, 9 April 2024.