The Employers Consultative Association yesterday called on employers to obey the new minimum wage law.
The law, which came into effect on Monday, stipulates that no worker in T&T, including migrant workers, should be paid less than $20.50 per hour, or $164 for an eight-hour day.
With the new minimum wage of $20.50 in effect, ECA chief executive officer Ronald Ramlogan said it is not optional as it is now law.
Ramlogan said the change in the law was announced in the 2024 budget presentation delivered by Minister of Finance, Colm lmbert, in October. That means business owners had ample time to put things in place, he said.
“We would encourage employers to adhere to the law and ensure they comply with what is a legislative requirement for those who are covered by the Minimum Wages Act and the Minimum Wage Board that supports the minimum wages,” said Ramlogan.
The Minimum Wages Act obliges employers to do the following:
• Keep, maintain and retain wage records for a minimum of three years in order to show compliance;
• Provide labour inspectors with information about the wages and terms and conditions of work;
• Allow labour inspectors to inspect wage records and pay sheets;
• Permit the inspectors to interview workers.
In October, shortly after the announcement of the increased minimum wage, the T&T Chamber of Industry and Commerce (TTCIC) said the increase requires employers and employees to focus on efficiency, productivity, and output.
“The TTCIC also understands the need for an increase in minimum wage as a necessary adjustment for the workforce given the current state of inflation,” it said.
In a news release on Sunday, Minister of Labour, Stephen Mc Clashie, said the new minimum wage, which is a 17 per cent increase, was determined based on careful consideration and assessment by the Minimum Wage Board.
“This board, comprising Government, workers’ and employers’ representatives, was first established in March 1977, and was constituted to advise and make recommendations to the Minister on all matters relating to the fixing of minimum wages and terms and conditions of service,” said the news release.
The new minimum wage was based on several considerations, including:
• The general level of wages in T&T;
• The cost of living;
• Contributions payable and benefits provided under the system of national insurance established by the National Insurance Act; and
• Other economic factors, including the requirements of economic development, levels of productivity and the desirability of attaining and maintaining high levels of employment.
Acting Labour Minister Randall Mitchell, in a news release on Sunday, said that the latest $3 hourly increase will benefit approximately 190,000 workers.