💼 Minimum wage advisory committee recommends $8.75 per hour

The Minimum Wage Advisory Committee has released a report suggesting a new minimum wage rate of CI$8.75 per hour, a 46% increase from the current CI$6. This recommendation comes after a year-long review and public consultation exercise. The committee believes this rate would be fair, affordable for most employers, and beneficial to low-wage employees. The report also suggests phasing out the practice of allowing employers in the hospitality industry to use gratuities to make up a quarter of the basic wage they pay to staff. 📝

The proposed increase is expected to directly benefit an estimated 10,457 workers, including business employees and domestic staff. The report states that the total direct beneficiaries represent 18.3 percent of the entire employed labour force of the Cayman Islands. While implementing the proposed increase is expected to cost businesses and households around $50 million, it is believed to improve the chances of households escaping poverty. The government has not yet stated whether it will adopt the MWAC recommendations. 📈

The committee also agreed that the new rate should apply equally to all workers regardless of gender and immigration status. For employers that have a gratuity or commission structure, the committee recommends that no more than 25 percent of the minimum wage per hour rate may be paid by gratuities or commissions, with at least 75% of the minimum wage rate coming directly from the employer. This rule is set to be implemented from July 2024 to June 2025. After that, the gratuity contribution to the prevailing minimum wage will be reduced by 5 percent annually until June 2029. 🏦