Adjustments in minimum wages necessary: Dr Partha
31 May, 2019, 7:25 pm
ADJUSTMENTS in minimum wages are necessary to respond to increases in inflation rate and labour productivity growth in Fiji.
Western Sydney University Professor of Economics and minimum wage consultant Dr Partha Gangopadhyay stated this while holding public consultation for members of the community in Nadi yesterday.
He said the national minimum wage (NMW) was an important tool in alleviating poverty.
“If the inflation rate is zero and productivity growth is zero, there is no need to increase the minimum wages. Since productivity growth is the main driver of the economy, the sectoral minimum wages must be suitably adjusted to give incentives to employees to upskill themselves to further enhance labour productivity growth,” Dr Partha said.
He pointed out that increases in productivity growth and the inflation rate would call forth increases in minimum wage both for the formal and informal sectors of the economy.
He added that employers and workers played a crucial role in raising future minimum wages through productivity growth and could share increased profits driven by productivity growth.
The ministry will be conducting public consultation for members of the public in Ba on June 1, 2019, at the Ba Town Council Hall at 9am.