By Spokesman Newsroom
BASSETERRE, St. Kitts (Thursday 23rd February 2024) – “We would have increased the minimum wage but with the deductions, if this amendment to the substantive legislation isn’t allowed, it means that persons would be earning below the minimum wage, and that’s just to put it in simple terms.” Minister of Labour and Employment Marsha Henderson while lending her support in parliament on Thursday 23rd February 2024, ahead of the passing of the Housing and Social Development Levy (Amendment) Bill, 2024, after its second reading.
Notably, such applies to the changes to the Social Security levy effective Friday 1st March 2024. According to Henderson: “This is a very important issue in respect to what the government is doing in regard to the Sustainable Development Goals [SDG].
Two of them in particular SDG 1 which speaks to no poverty. We feel by exempting this category of workers from the payments of the social housing and social development levy that these people would be able to attain and earn a decent and livable wage and of course therefore prevent them from falling into poverty.” She informed that the amendment to the substantive legislation seeks to do really is to implement one of the recommendations made by the National Minimum Wage Advisory Committee noting that the particular recommendation was posited by the person who sat on the committee from the Social Security department.
“What it says, Madam Speaker, is the act we propose be amended in section 3, subsection 2, paragraph A… ‘In the case of an employee whose wages are up to $23,400, or $450 per week, that there be 0% deduction for the employee by the employee and 3% by the employer in respect of the wages, and the employer pays to the employee proposing that there be zero deduction and exemption for this vulnerable group of persons who make minimum wage, in this case $430 but we’ve taken it up to $450 based on the mathematics done by the persons who can do mathematics…and I’m guided by them so that to ensure that persons earning the minimum wage when deductions are made they do not go below the minimum wage and that is of course helping us to achieve what we refer to as a sustainable island state,” the Minister of Employment stated. Henderson also highlighted: “This [move by the government] as well, we think, applies to SDG 10, which is reducing inequalities.
If this exemption isn’t made to this vulnerable group of people, persons, Madam Speaker, it means that there would be what the IMF International Monetary Fund] refers to as a disparity between the income earners.” The Labour Minister went on to say: “And so we feel, and maybe I shouldn’t say it this way, we want to ensure that there’s no gap between those here and those up here. We want to make sure that the gap, if there is any at all.
And someone is saying there is; that the gap doesn’t continue to grow and that we try to attain income inequality because the increase in the minimum wage, would be of no effect as the Honorable member from number eight [Prime Minister and Minister of Finance-Dr. Terrance Drew] said.
We would have increased the minimum wage but with the deductions, if this amendment to the substantive legislation isn’t allowed, it means that persons would be earning below the minimum wage, and that’s just to put it in simple terms.” Henderson quoted ILO [International Labour Organization] Director General His Excellency Gilbert F. Houngbo.
“For those reasons, Madam Speaker, I want to support the amendment and refer to a quote by the ILO Director General which has become my favorite quote from His Excellency when we were doing the work: Income inequality and poverty will rise if the purchasing power of the lowest paid workers are not maintained’.” “Now, if this amendment to the substantive legislation, whereby this vulnerable group of persons are exempted from the payment of housing and social development levy, if this doesn’t apply, it means that income earning, will be reduced and we will not be working to achieve the sustainable development goal, where we say we want to have no poverty and reduce inequalities by 2030,” the Labour Minister remarked. She continued: “And so we’re on a clear path of achieving this agenda.
And what he goes on to say, Madam Speaker, this could fuel social unrest across the world and undermine the goal of achieving prosperity and peace for all. Not for some, not prosperity for some, and peace for some. But it will undermine our goal of achieving prosperity and peace for all.” Front Page Image: Minister of Labour and Employment Marsha Henderson while giving remarks in parliament on Thursday 22nd February 2024 in support of the Housing and Social Development Levy (Amendment) Bill (SKNIS image)
