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The minimum wage in St. Maarten is being indexed for the third consecutive year (see related article). Granted, 19 guilder cents may not seem like much, but on the current hourly amount of NAf. 8.56 it is still a hike of about 2.2 per cent.
It also should not be forgotten that many making perhaps just a little more probably won't even get a cost-of-living adjustment (COLA), most likely because the company or other entity for which they work simply can't afford it. Whether the economic situation allows such is also a factor regarding the minimum wage, but considering that the amount is anyhow not really sufficient to guarantee a decent existence certainly in case of a lone provider in a big household, one would be hard-pressed to oppose raising it a bit as compensation for the ever-higher prices of consumer goods.
Some might be surprised that this step is being announced now, with an outgoing government in office. After all, caretaker ministers are supposed to handle only running affairs and not undertake new decisions or policy initiatives.
However, it concerns a fairly routine and straightforward matter, based on advice by the Social Economic Council SER and findings of the Department of Statistics STAT. In addition, the way things are going it could be a while before a new cabinet actually is installed and preparations need to be made so the change can go into effect per January 1, 2015.
Mind you, just this small an increase potentially still has consequences for businesses where use of the minimum wage is prevalent, such as the security sector. The employers involved as well as their clients should keep in mind that if people are expected to do a good job they also must be paid accordingly.
Cheaper is definitely not always better, especially where it involves something as vital as protecting life and property. The saying "penny wise, pound foolish" comes to mind.
