Mauritius: the double increase in wages planned for January raises hopes and concerns

2023-12-31 23:05:30

Double good news for employees in Mauritius: the government has announced a significant increase in the minimum wage, followed by an unprecedented increase in salaries. This last measure concerns more than 460,000 active people. If the unions welcome this decision, industrialists and economists are wondering…

With our correspondent in Port-Louis,

« This is unheard of in Mauritius. » Trade unionist Jane Ragoo is delighted with what she considers to be a major step forward for salary increases in Mauritius. The general secretary of the Confederation of Private Sector Workers was pleasantly surprised by the Minister of Finance’s announcement last month: “ To see that a salary can double in five years is unheard of in Mauritius. We understood that people can no longer live on a poverty salary ».

The minimum wage concerns 140,000 employees in the public and private sectors. It is revalued to 15,000 rupees, or 310 euros compared to 240 euros previously. This is an increase of 45% when adding social security benefits. This increase is coupled with another exceptional decision since all 460,000 Mauritian workers, both private sector employees and civil servants, will see their salaries increase by 30 to 40 euros from the end of next January.

An announcement that shook up the plans of Manoj Hardial, who runs a textile company with six employees: “ This is why I am present at fairs at the moment. It will be necessary to reap maximum profits to be able to maintain jobs. And then I hope that the tax authorities will still help companies in difficulty ».

A decision worth 22 billion rupees

One of the employers’ organizations, Business Mauritius, affirms that this situation puts strong pressure on manufacturers. Economists estimate the cost of this measure for the country at 22 billion rupees. This is, for example, the annual budget devoted to National Education.

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Analyst Manisha Dookhony believes that of all industrial sectors, textiles will be the most impacted. A sector that will be forced to review its model. She also observes that Mauritius is implementing its plan to become a high-income country: “ These new salary policies also give an indication that Mauritius wishes to move towards more value in jobs and turn in particular towards high value-added sectors such as biopharmaceuticals. ».

Some industrialists consider the double salary increase decided by the government a bit hasty, or even that it is a populist decision as the country prepares to enter the electoral campaign.

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