Workers struggling to meet the rising cost of living are calling on the Government to increase the minimum wage in the national budget to be presented in the House of Representatives tomorrow, arguing that their earnings are no longer enough to cover basic household expenses.
With the minimum wage at $20.50 an hour since January 2024, some workers believe raising it to $25 an hour would provide much-needed relief, particularly for parents trying to cover rent, food, transport and school expenses.
For Elizabeth Frances, who works in the variety store sector and is raising two children, the pressure has forced her to find additional work to keep her household afloat.
“I have two children. They’re mine,” Frances explained, describing how her earnings have left her dependent on a second job to meet the family’s needs.
“I have to have a second job because the money that is coming in is not enough. And I have to send my children to school and buy books. They have to eat every day.”
Frances wants the minimum wage raised to at least $25 an hour, arguing that even a modest increase would help workers keep their families fed and housed.
“I want them to raise it to $25 an hour at least so that we can get a little more and I wouldn’t have to be cleaning in the night and leaving my children and trying to hustle.”
Her experience reflects the challenge facing low-income households as workers look to the budget for measures that can improve their purchasing power without placing additional pressure on already stretched family finances.
From $7 to $20.50
The media has reported that the minimum wage has increased several times since it was introduced in 1998 at $7 an hour.
It rose to $9 in 2010, then to $12.50 in 2011. Another adjustment took the rate to $17.50 in 2019, before the increase to $20.50 took effect on January 1, 2024.
Despite those adjustments, workers contend that increases in the cost of essential goods and services have eroded the value of their earnings.
At the current rate, a worker earning minimum wage receives $164 for an eight-hour day and $820 for a 40-hour week or $3,280 for a four-week month.
That income must stretch across food, rent, utilities, transport and other household expenses, with little room for emergencies or savings.
Laundry worker, Simon Griffith, who earns the minimum wage, described the difficulty of making his money last until the next payday. He struggles to cover his expenses most months and has to borrow from family and friends to get through.
Griffith pointed to the rising prices of food and other necessities, arguing that workers’ earnings have not kept pace with the increases they face when shopping.
Although he understands the concerns surrounding the country’s fiscal position and the prospect of another deficit budget, Griffith believes the hardship of minimum-wage earners must be considered.
For workers such as Griffith, the issue is not simply whether an increase is desirable, but whether their pay can cover the cost of maintaining a household without repeated borrowing.
Cost of living outpaces earnings
Labour specialist Trevor .Johnson stresses that the cost of necessities continues to challenge the average citizen, with food, shelter, transport and healthcare placing considerable pressure on household budgets.
He pointed to the continuing instability of global prices, fuelled by wars and international tensions, as another factor affecting the cost of basic goods and services. For households already operating on tight budgets, further price increases leave fewer options for managing their monthly expenses.
Johnson believes particular attention must be paid to households in which a single parent is raising two children, especially where an unemployed relative or an elderly person also depends on the household’s income.
These families face competing demands for the same limited resources. Food, rent, school expenses, transportation and healthcare must be covered, even when earnings remain unchanged.
He believes the upcoming budget must provide some form of relief for such households while recognising that the pressure extends beyond minimum-wage workers.
Johnson also pointed to the position of some public servants and state-sector workers who, as 2026 draws to a close, remain on collective agreements dating back to 2013 or 2019, even as expenditure continues to rise.
He argued that workers cannot be expected to absorb increasing living costs indefinitely while their earnings remain tied to agreements negotiated years ago.
The issue, he believes, requires a broader policy response that considers wages, employment, the cost of living and the sustainability of businesses.
Johnson calls for wider reform
Johnson’s recommendations extend beyond an increase in the minimum wage. He believes the budget must address the economic and social conditions that determine whether workers can maintain a reasonable standard of living.
He called for the Government to reduce wasteful and unnecessary expenditure while introducing incentives to help private-sector businesses remain viable and continue providing jobs.
Support for small and micro enterprises is also important, he argued, as these businesses form part of the economic activity that sustains employment and provides income for households.
Johnson also proposed greater support for what he described as the social solidarity economy, including the potential of cooperatives and credit unions to strengthen communities and provide additional avenues for economic participation.
He wants unemployment addressed urgently, particularly in light of recent business closures and the prospect of further retrenchments affecting hundreds of workers, alongside those already struggling financially.
“A clearly defined job-creation policy is needed together with the reintroduction of apprenticeship programmes to build skills and improve employment opportunities for young people.”
For Johnson, improving the lives of citizens requires policies that link economic development with employment, education and social protection. Wage adjustments may form part of that response, but he believes they should be accompanied by measures that improve the wider conditions in which people live and work.
Businesses warn of a cycle
Former finance minister Karen Nunez-Tesheira cautioned that increasing the minimum wage could place additional pressure on businesses already facing high operating costs.
She argued that while a wage increase would initially provide workers with more money, employers could respond by raising prices to recover higher wage bills.
“The number one complaint you get from persons who are in the business is their overheads, and their overheads are usually connected to the costs that they have to pay for salary and wages,” Nunez-Tesheira explained.
She warned that higher labour costs could be passed on to consumers through more expensive goods and services, potentially reducing the purchasing power the wage increase was intended to improve.
“If salary and wages are going to be your number one hit, you are going to have to make an adjustment, and the adjustment is going to increase the price of whatever you are selling,” she argued.
Nunez-Tesheira questioned whether a wage increase would deliver lasting relief if the cost of groceries and other purchases rose at the same time.
“The question you really do have to ask is, what is the thinking behind it? What is the objective behind increasing minimum wage?” she asked.
Nunez-Tesheira said the challenge was finding an approach that recognised workers’ need for better pay while protecting businesses responsible for generating revenue and providing employment.
She described the possibility of a cycle in which higher wages lead to higher business costs, which are then passed on to consumers, leaving workers paying more for the same goods and services.
Her concern is that a wage increase could provide immediate assistance without addressing the factors driving up the cost of living.
The issue, therefore, is not only how much more workers should earn, but whether an increase would translate into a meaningful improvement in their ability to purchase necessities.
