THE impact of the $4 an hour minimum wage on small and medium enterprises and their ability to sustain it will be discussed at length to determine if any intervention is needed, says Deputy Prime Minister and Finance Minister Professor Biman Prasad.
“I think small and medium enterprises and businesses are very important and we will be having discussions with the Ministry of Employment and the business community,” he said.
“We will be inviting representatives from the small and medium enterprises, we are going to make an assessment on what is happening there and how it may or may not be impacting the SMEs.”
The Deputy PM said increasing the minimum wage was beneficial for workers, the economy and businesses – but it had to be done in a manner which was sustainable.
“Raising minimum wages is not a bad thing for an economy.
“It is not a bad thing for businesses as well because sometimes when you raise people’s wages, — these are people on the minimum wage and minimal income — their propensity to consume and spend, for that category of people, is always very high.
“So if you build the income of our most vulnerable group, the low income people, it is good for the economy and good for business because they spend anywhere from 90 to 100 per cent of their income and obviously it helps.
“So we have to make an assessment when we do this.
“My own belief is raising minimum wages is not always bad for businesses, it can be very helpful, but it has to be assessed carefully, that is the important thing.”
