Good day to members of the media and the listening public.
Today, June 1 2023, I am pleased to announce that Bermuda’s first minimum wage rate of $16.40 is now in effect.
This long-awaited legislation will enable low-income earners to receive a dignified wage. It is estimated that hundreds of workers across Bermuda will receive a pay increase due to the newly enacted National Minimum Hourly Wage Rate.
The newly enacted minimum wage rate will become the national wage floor and the lowest salary employers are permitted to pay. Most modern, developed countries have a minimum wage regime and more than 90% of countries designated as ILO member states currently have a statutory wage scheme. Numerous evidence-based studies outline the many benefits employers and employees realise in countries where a minimum wage has been instituted. Minimum wages will assist in the following:
- Promoting fair compensation for employees;
- Improving an individual’s quality of life;
- Preventing the exploitation of workers; and
- Preventing working families below the poverty line from receiving what many would consider unlivable wages.
This Government has committed to the workers of Bermuda to ensure that they receive a dignified wage which will allow them to cover their basic needs. It is a promise this Government has worked diligently and deliberately to implement through the desire to provide adequate social protections to all Bermudians, and establishing a comprehensive minimum wage is fundamental to ensuring that we progress as a just and equitable society.
I am also pleased to announce that the Department of Labour is releasing a Guide to the Minimum Hourly Wage Rate, which provides an overview of the legislation and summarises the operation and enforcement of the minimum hourly wage rate.
It covers areas such as:
- What is a minimum wage;
- Who is entitled to a minimum wage;
- The rights of an employee;
- The responsibilities of an employer; and
- The role of Labour Inspectors.
The Guide is available on the Department of Labour’s webpage.
People of Bermuda, this is not an opportunity to alter current wages downward or introduce lower wages for new employees.
It is important to note that employers paying higher rates of wages and providing more favourable terms and conditions of employment than the prescribed wages at the commencement of the Minimum Wage Order are required to continue to pay such higher salaries and provide more favourable employment terms and conditions.
The Minimum Wage Order does not alter other terms of existing employment contracts. Accordingly, employees will continue to be entitled to additional allowance and benefits as agreed upon in their employment contracts.
Employers found manipulating employees’ wages to try to intentionally circumvent the Order, corresponding legislation, and policies should be reported to the Department of Labour, where such matters will be reviewed and investigated under the relevant legislation.
Employers, employees and their representatives who have questions concerning the minimum hourly wage rate should contact the Department of Labour. The Department of Labour is open Monday to Friday between 8:45 am and 5:00 pm. The number to call is 297-7716 or email departmentoflabour@gov.bm. Additionally, employment violations may be reported online at bermudajobboard.bm/evtl
I want to thank the dedicated team that has worked on the legislation and policies and the Wage Commission for their initial work to get us here. Today a minimum wage is a reality in Bermuda, Our people deserve it. They deserve to enjoy decent work and fair compensation.
Thank you.