Good morning, Mr. Speaker,
I am pleased to introduce to this Honourable House today the Wage Commission’s Report on Recommendations for the Minimum Hourly Wage in Bermuda. This report marks a pivotal step in our ongoing commitment to ensuring a dignified standard of living for all Bermudian workers.
Mr. Speaker,
I am also pleased to lay in this Honourable House today the Employment (Minimum Hourly Wage) Amendment Order 2025 which reflects the recommendation by the Wage Commission to increase the statutory minimum hourly wage rate with effect from 1 September 2025.
Mr. Speaker,
Members of this Honourable House may recall that in September 2024, I presented the Government’s Position Paper on Progressing Bermuda’s Minimum Hourly Wage Rate from the current rate of $16.40 to a rate between $16.81 and $17.23 in 2025. That Paper underscored the Government’s unwavering commitment to advancing the minimum hourly wage, initially enacted on June 1, 2023, and proposed a clear framework for its progression.
Mr. Speaker,
The Wage Commission, in accordance with its obligations under sections 9 and 10 of the Employment (Wage Commission) Act 2019, has affirmed the Government’s position in this regard. Crucially, the Commission has recommended that the statutory minimum hourly wage rate be increased in 2025 to $17.13.
This adjustment is not merely an incremental change; it is a vital investment in our society and economy. A minimum wage that keeps pace with the cost of living is fundamental to ensuring that full-time work provides a pathway out of poverty, rather than trapping individuals in it. This progressive approach helps to reduce reliance on social safety nets and builds a more resilient economy from the ground up.
Mr. Speaker,
It is anticipated that more than 2,500 workers will benefit from this adjustment, primarily those in the service and sales sectors. These workers include individuals employed in hotels and restaurants, retail workers, personal care workers, cleaners, beauticians, and domestic workers.
Furthermore, Mr. Speaker,
This position aligns directly with international best practices and the principles advocated by the International Labour Organization (ILO). The ILO consistently emphasizes that minimum wages should be reviewed and adjusted periodically to ensure they provide a living wage, taking into account the evolving cost of living, social security, and prevailing wage levels.
Their conventions and recommendations highlight that fair minimum wages are essential for decent work, social protection, and inclusive economic development. They play a critical role in reducing inequality and enhancing social cohesion.
The Commission’s Report states that the minimum hourly wage rate should be progressed by the annual average of inflation, using the Consumer Price Index (CPI) as the indicative measure, capped at 2.5% per year, every two years. Taking the annual average rate of inflation for 2023 and 2024 of 3.3% and 1.9% respectively, the Wage Commission proposes a statutory minimum hourly wage rate of $17.13, an increase of $0.73 per hour from the current rate.
Additionally, Mr. Speaker,
The Commission’s Report recommends that the statutory minimum hourly wage rate be reviewed every two years, utilizing information from the annual Employment Survey as well as the Labour Force Survey. As the Commission notes, this biennial review will minimize potential business disruptions and afford employers an opportunity to “…adjust their operations and pricing strategies, accordingly, mitigating any adverse effects on employment levels or business viability.”
Moreover, knowing that wage adjustments will occur every two years based on an objective economic indicator allows for better long-term planning and budgeting for businesses and households alike.
Mr. Speaker,
The Government wishes to express its sincere gratitude to the distinguished members of the Wage Commission. Their unwavering commitment has been instrumental in ensuring a basic standard of living for the people of Bermuda.
Thank you, Mr. Speaker.