(CMR) The Minimum Wage Advisory Committee has proposed a new minimum wage of $8.75 an hour to “address exploitation and provide real relief to the lowest-paid workers” in the Cayman Islands.
According to a report from the MWAC, based on the analysis of the data provided from its public consultation exercise and various other national data sources, the MWAC recommends CI$8.75 gross per hour as a fair and acceptable minimum wage rate.
“The MWAC considers this a fair wage that would be affordable to most employers and beneficial to low-wage employees,” the report stated
The MWAC said based on survey responses suggested a minimum wage of up to CI$20.00 (5.5% of respondents), it is anticipated that some persons will not be satisfied with the MWAC’s minimum wage recommendation because they would not perceive this as an acceptable rate for a “living wage”.
However, the MWAC explained that setting the minimum wage requires a balancing act to ensure that there is economic stability but, at the same time, allowing people to meet their basic needs.
“While the MWAC wants to ensure that all people in the Cayman Islands have a decent standard of living, the Committee is mindful of its mandate to review the minimum wage with a clear policy objective of addressing exploitation and providing real relief to the lowest-paid workers,” the report stated.
According to the report, the MWAC unanimously agreed that the minimum wage rate should apply equally to all persons regardless of gender and immigration status (i.e. Caymanians and non-Caymanians). The minimum wage applies to all employees, including those in the domestic or household sector and by organizations legally defined as non-governmental, not-for-profit and charitable organizations, and employees (as defined in the Labour Law) of all ages.
For employers that have a gratuity structure (e.g. hotels, condos, restaurants) or employers that offer a commission structure (e.g. retail trade), the MWAC recommends that no more than 25 percent of the CI$8.75 minimum wage per hour (gross) rate (i.e. CI$2.19) may be paid by gratuities or commissions. This means at least 75% of the minimum wage rate must come directly from the employer beginning July 2024 to June 2025.
After that, the gratuity contribution to the prevailing minimum wage will be reduced by 5 percent annually, with the reduction occurring in July of each year until June 2029. Starting July 2029, there should be no gratuities contribution to the minimum wage.
The ‘gratuities exception’ is, however, only applicable to businesses that have a gratuities scheme in accordance with the Gratuities Regulations, that is in good standing and has been approved in writing by the Director of Labour and Pensions in accordance with the current Labour Law and Regulations.
The MWAC also recommends for household employers of ‘live-in employees’ only, a maximum of 25 percent in-kind credit to be applied to the CI$8.75 per hour (gross) minimum wage rate (CI$2.19 per hour) for accommodations and utilities only. As per the Labour Act, this should be applied to the standard work week. This recommendation is to assist in decreasing the impact on household employers and provide suitable accommodation to the employees.
Part-time employment of Caymanians aged 12 to 17 will benefit from a proposed school-age minimum wage of CI$6.00 per hour. This encourages school-age youth employment to improve work ethics, and discipline and gain experience, and encourages employers to hire young Caymanians for part-time employment opportunities.
The Committee cautions that this minimum wage recommendation is valid only until the next review.
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