NCCI: Minimum Wage Review Premature

The Nadi Chamber of Commerce and Industry (NCCI) has stated that now is not the opportune moment to consider an increase in the minimum wage. NCCI board member Dr. Ahmed Shakeel Shariff commented on the matter following the recent National Budget announcement.

Dr. Shariff acknowledged that a minimum wage hike could benefit workers. However, he expressed concern that a proposed review might have broader repercussions for the business community. He explained that raising the minimum wage often leads to a ripple effect across the entire wage structure, as employees earning slightly above the minimum also expect pay adjustments.

This, he noted, places additional financial strain on businesses, particularly those still navigating economic recovery. "We have just gone through one. I think it would be too fast for business houses," Dr. Shariff said. He suggested that such considerations might be more appropriate later, once the economy, and specifically the tourism sector, strengthens. "can consider maybe later when we start strengthening our spine, when the tourism industry is doing a bit better, for which they have really focused on in this budget," he added.

Businesses require greater stability before any further wage adjustments are implemented, according to the NCCI. The chamber emphasized that the issue extends beyond the minimum wage itself, encompassing the entire salary scale and the financial pressures it imposes on employers.

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We have just gone through one. I think it would be too fast for business houses. can consider maybe later when we start strengthening our spine, when the tourism industry is doing a bit better, for which they have really focused on in this budget.