THE Private Sector Commission (PSC) has agreed to move forward with plans to increase the national minimum wage from $44,200 to $60,000, and is awaiting the formation of a new tripartite committee to officially communicate its preparedness.

Speaking with the Guyana Chronicle on Wednesday, PSC Chairman, Paul Cheong, said that at a PSC meeting last week, it was agreed that the private sector will move forward with the increase, which had been pushed back last year due to the PSC asking for more time to stabilise their businesses in light of the COVID-19 pandemic.

“We had a meeting last Thursday and we agreed on the $60,000. A lot of the companies already pay that and more as the minimum wage, and employees need to be comfortable. For those who are below it, it will be a good boost to their income. It’s small, but people need to be comfortable to perform properly enough,” Cheong said.

With the PSC now ready to move forward, the next step will be for the decision to, officially, be accepted by a tripartite committee formed among the PSC, Ministry of Labour, and trade unions.

Minister of Labour, Joseph Hamilton, also confirmed that while he has not yet received an official correspondence from the PSC, several members would have unofficially indicated to him that they were ready to move forward with concluding the long-awaited move. He was elated to see the issue finally moving forward.

“This matter has been out there and I am heartened that I have heard from the private sector leaders, who are suggesting to me that we can conclude this matter at the earliest opportunity.
“I have concluded several matters and this is a major one that is outstanding for me and I’m hoping that we can conclude it and bring finality to it,” Hamilton said.

Soon after the government was elected to office in August 2020, Minister Hamilton had indicated that he was eager to move forward with the discussion and signing of the order to bring the wage increase into fruition.

The national private sector minimum wage has not been increased since 2017, when it was raised from an hourly rate of $202 to $255, taking the monthly salary from $35,000 to $44,200 for a 40-hour week. Comparatively, the minimum wages for the public sector is currently $70,000.

Though eager to move forward with the issue, it will still be some time before it is executed given that the life of the last tripartite committee has come to an end.

Minister Hamilton said that he will be writing the private sector and trade unions shortly for them to indicate if their representatives for the new committee will remain the same or if changes will be made.

“When that information is received, I will convene a meeting with the tripartite committee to finally bring this matter, once and for all, to an end,” Hamilton said.
Once that step is concluded, the issue will then be taken to Cabinet.

“At the level of the government, I as minister would have to take it to the Cabinet for validation, scrutiny and instructions to proceed and issue the order, but, of course, I will be guided by the Attorney-General about the structure of the order from the legalistic perspective,” Hamilton related.