The Coalition Government has announced an increase in the national minimum wage, which is a major step toward guaranteeing equitable compensation for workers across the country.

Finance Minister Professor Biman Prasad says the national minimum wage will increase to five dollar per hour after a thorough evaluation by an impartial team of experts that involved discussions with employers, labor organizations, elected officials, and other interested parties.

Prasad says the implementation of this wage increase will occur in two phases.

Effective from August 1, 2024, the national minimum wage will increase to $4.50 per hour.

This will be followed by a further increase to $5 per hour, effective from April 1, 2025.

In addition to the general minimum wage increase, sector-specific wages will also see a rise.

Starting August 1, 2024, all sector wages will be increased by 50 cents across the board, with an additional 50-cent increase set for April 1, 2025.

“For instance, a cashier currently earning $4.44 per hour will see their wage rise to $4.94 per hour from August 1, 2024, and further to $5.44 per hour from April 1, 2025. Similarly, a foreman in the construction industry currently earning $6.54 per hour will have their wage increased to $7.54 per hour by April 1, 2025.”

Prasad is urging all employers to ensure that the correct minimum wages are paid to workers.

Recognizing the potential economic challenges, these new rates may pose for some employers, the government has expressed openness to exploring solutions for those significantly impacted.

The Coalition government believes that the new minimum wage rates will not only enhance productivity but also reduce employee absenteeism by providing greater incentives for lower-paid employees to improve their attendance and aspire to higher incomes through skill acquisition and increased productivity.

The wage adjustments reflect the government’s commitment to fostering a fair and just working environment for all workers in the country.