The Bahamas government says there will be an increase in the minimum wage and has also placed 38 new items under price control in an effort to diversify the tourism-dependent economy.
The announcement was made in a radio and television broadcast on Tuesday night, by Prime Minister Philip “Brave” Davis.
Davis said the minimum wage will be increased from US$210 to $260 a week, retroactive from July for workers in the public service while workers in the private sector will benefit from the change in January next year.
Davis said the timeline is to give employers time to prepare for the increased expense.
“Nothing is more important that to helping families make ends meet than higher wages. The last time the minimum wage was raised in the country was 2015. A new increase has been long overdue,” Davis said.
“The higher minimum wage would benefit tens of thousands of Bahamians. Will the increase help? Yes it will. It was long awaited, long overdue and the extra money every week will make a difference.
“However, we are aware that this will not eliminate the hardship of trying to make ends meet in today’s economy. Instead, it represents progress on the way to a livable wage. The wage was negotiated by the National Tripartite Council, which includes the government, representatives from the private sector, and unions,” Davis said.
During his near one-hour broadcast, Prime Minister Davis also disclosed that as Bahamians continue to grapple with the excessive cost of living compounded by inflation, 38 new items will be subject to price controls.
He said this means the government will limit the wholesale and retail mark-up on items like diapers, and food including chicken, eggs, bread, bananas, apples, oranges, broccoli, onions, and potatoes.
He said these items are being added for at least a six-month period, following which the government will review and evaluate the impact on businesses and consumers. He said the profit margin on price-controlled drugs is also being reduced to provide additional relief to Bahamians.
CMC/
