WORKERS in the informal sector are receiving $48 more per week and spending more with the implementation of the new minimum wage rate, says the Minister for Employment, Productivity and Industrial Relations Agni Deo Singh.
“We’re seeing reports of increased purchasing power among these workers,” he said.
“For many in this (informal) sector, who often face precarious and inconsistent earnings, this new minimum wage continues to provide a crucial safety net and a more stable foundation for their income giving workers in the informal sector an extra $48 per week from the previous minimum wages of $4.”
Mr Singh said the workers had more disposable income to meet basic needs, and the injection of funds was likely to stimulate local economies at the grassroots level.
“The establishment of a minimum wage offers a degree of formalisation and recognition to the work performed by individuals in the informal sector.
“It sends a clear message that their contributions are valued and deserve fair compensation.”
Asked how the ministry was monitoring implementation of the new wage rate within the informal sector to ensure workers were benefiting, Mr Singh said they had implemented several mechanisms to bolster compliance with the enforcement of minimum wages.
“Labour inspectors conduct regular and targeted inspections of workplaces across various sectors to verify wage records and ensure compliance with minimum wage regulations.
“The ministry is also prosecuting employers who fail to comply with minimum wages regulations and we will ensure that workers get fair compensation for their work.”
The informal sector is estimated to have over 100,000 workers.
