By: Spokesman Newsroom
BASSETERRE, St. Kitts (Thursday 28th August 2025)-Prime Minister and Minister of Finance, Dr. Terrance Drew has highlighted the role of the recent minimum wage increase in improving the lives of workers linked to three areas namely immediate ‘money in pockets’ benefit, improved financial standing and retirement security.
He expressed such sentiments while appearing on the popular Freedom FM Issues programme on Thursday 28th August 2025 hosted by Juni ‘Big JL’ Liburd.
Dr. Drew who also serves as National Leader of the St. Kitts-Nevis Labour Party (SKNLP), applauded his government’s commitment to advancing the working class.
“When we came into office… it was at $9 per hour, which was $360 per week,” he said whilst adding “Since we have been here… we have gone from $9 per hour to $12.50 per hour.”
Explaining the significance of the wage hike, he noted: “Why is a minimum wage increase so important? One, it says that persons who work shouldn’t work for less than a particular amount. Secondly, you put money in people’s pocket, when you increase the minimum wage from $9 per hour to $12.50 per hour, that’s going from $360 per week to $500 per week, which equates to over $500 extra per month, and that goes to thousands of people and that is why I say that this has put more money in people’s pocket.”
The Prime Minister further emphasized the broader social and economic impact of such policies.
“…the reason why a wage is so important-an increase in wage-one, you cover thousands of people. Secondly, it empowers people because people will have more money in their pocket so the spending power goes up. This has benefits socially even psychologically when a worker will work for more. In addition to that it means that if someone with an increased minimum wage were to go to a bank, their standing before the financial institution in this case, a bank is much better and it gives them an opportunity to be able to have a mortgage, whereas before it might have been more challenging. Not that you wouldn’t have any challenge but increasing your income going before a bank increases your chances,” he said.
PM Drew, the Minister with responsibility for Social Security, also pointed to the long-term benefits for workers’ retirement security.
“Thirdly, when you reach the age of retirement, your social security would be higher. So this is not just putting money in people’s pockets now. It’s money being put in people’s pockets now and money being put in people’s pockets later on when they retire. That is why an increase in minimum wage is so significant and so powerful.”
Contrasting the wage increase with temporary social programmes, Dr. Drew explained why legislative changes hold more weight: “Let’s say you were to have a programme where it is not linked to wage. One that can be cut at any time because it’s not in law that you must receive it. Secondly, when you come to retirement, your retirement is not based on those things; it’s based on your wage income or your salary income, how much ever you bring in. And thirdly, when you go before a financial institution, they would not count any other income outside of what they would consider to be a wage, a salary, or from a business, they would just think it’s a passive transfer; it would not go towards your standing before a financial institution.”
He concluded by stressing the far-reaching benefits across society.
“So on those three things, that is why a St. Kitts-Nevis Labour Party always seek to increase people’s wages and salaries, and that is why the St. Kitts-Nevis Labour Party must be commended for this tremendous, tremendous policy position in terms of empowering our people. Since more money is in people’s pockets now, because it’s over $500 per month for thousands and thousands of workers. Secondly, when you go before a financial institution, your position is stronger, and thirdly when you retire you get a larger social security, larger pension. Now as a result now in addition to all of this because there is more money in people’s pockets spending goes up and this can help local businesses as there will be faster turnover of goods moving through the economy and as a result of that you will see the benefit there as well, and so I want to say that this really is a tremendous, tremendous achievement to have this minimum wage to impact the lives of so many thousands of workers here in St. Kitts and Nevis.”
Liburd pointed out that “the government of the Labour Party must take credit for this because in your term in office, every Labour Party has successfully increased the minimum wage…Five times …and that’s a good record.”
PM Drew agreed, noting: “That’s a good record because it’s part of our principle.”
He linked the policy to the historic struggles of workers in St. Kitts and Nevis.
“If you remember clearly the Buckley’s uprising was about wage increase and that has been a founding principle of the Labour Party back then… and just to add we are the oldest political Labour Party in the region and I think it’s because we have stuck to principles like this, like seeking to improve workers’ conditions, and wage and wage increase is one of the most significant ways in which you can do that.”