Photo: Oscar Requeña, Minister of Labour
BELIZE CITY, Thurs. Dec. 22, 2022
Today, the Ministry of Labour announced in a press release that amendments have been made to the Wages Regulations in Statutory Instrument No. 169 of 2022 and No. 170 of 2022 to set the stage for an official increase in the minimum wage that is to be put into effect on January 1, 2023. It is a fulfillment of a pledge made to the Belizean public by the PUP in the party’s manifesto, Plan Belize (prior to the 2020 general elections), to increase the minimum wage to $5 hourly. Prime Minister John Briceno, in a recent interview, estimated that 30,000 workers in Belize are receiving less than this hourly wage, and he said that his government, by means of the new legislation, is attempting to remedy that inequality.
The Belize Chamber of Commerce and Industry (BCCI), however, has expressed concerns about the impact such an abrupt increase in the wage bill could have on businesses and has estimated that the private sector could be facing an additional $200 million in wage expenditure, which could result, the BCCI says, in layoff of workers and hikes in the prices of goods and services in order to offset the additional costs. The Chamber is thus urging the government to take a phased approach to the implementation of the wage increase.
When asked by reporters about his view of the BCCI’s position, Briceno said, “Don”t think its overnight, because we’ve been telling them. It was in PlanBelize, and we were telling them over and over this is coming. The minimum wage has not increased in 10 years, and we have the issue of inflation, and then you have poor people making $3.30 an hour. I’m just appealing to the private sector for them to do their part. They are going to benefit, you know, because the more money people have, the more they can spend, the more they can afford to go and buy in their stores. So the private sector, they are going to benefit, and most businesses are already paying more than $5 per hour than what we are proposing.”
“I think of the 100,000 plus workers. About 30,000 are earning less than $5 per hour. So by doing this, all of this will be in effect a much needed raise,” the PM said.
The release from GoB states that the upcoming increase in the minimum wage is in line with the Government’s overall strategy to reduce inequality and allow working-class families to provide a decent life for their families.
The release states, “this increase in wages will result in tangible benefits for both businesses and workers. An increase in income in the hands of consumers will provide a stimulus to the Belizean economy through increased demand and consumption. “
The ministry states that they are engaged in reviewing a wage-setting methodology that will be used to determine minimum wage increases in the future.