Cabinet approves minimum wage increase to $13, plans three-year phased approach

By Robert Andre Emmanuel

The Cabinet of Antigua and Barbuda has accepted a recommendation from the National Minimum Wage Advisory Committee to raise the national minimum wage from $9.00 to $13.00 per hour, with implementation to be rolled out over a three-year period to cushion the economic impact on businesses and employers.

Director General of Communications in the Prime Minister’s Office, Maurice Merchant, who briefed journalists on Thursday, said the decision reflects the government’s commitment to balancing worker welfare with economic stability.

He noted that the phased approach was considered necessary given the potential strain a single-step increase could place on certain sectors.

“A large number of persons will be impacted,” Merchant said, citing Social Security records showing approximately 7,200 workers currently earning between $9.00 and $12.00 per hour.

That figure includes roughly 740 workers in the hospitality industry alone.

Merchant pointed to gas station attendants as one group requiring careful consideration under the phased model.

“To increase from $9 to $13 at one fell swoop may result in retrenchment,” he said, noting the government was moving cautiously to avoid unintended job losses.

The National Minimum Wage Advisory Committee, which comprises representatives from government, employers’ organisations and trade unions, formally presented its findings to Cabinet on Wednesday.

While Cabinet accepted the EC$13.00 figure in principle, it directed the Committee to undertake broader consultations and engage independent experts before final recommendations on the phase-in timeline are submitted.

Merchant identified economist Yves Ephraim as among those the Committee has been advised to consult to assess the economic implications of the increase more comprehensively.

The Committee has been given two weeks to complete those engagements and return to Cabinet with an updated report.

“Members of Cabinet acknowledged the importance of striking a fair and sustainable balance between improving the standard of living for workers and also maintaining a stable and competitive business environment,” Merchant said.

The government also confirmed that a separate public sector wage increase, previously announced for late June of this year, remains on schedule.

Merchant said the Browne administration intended to honour that commitment.

The minimum wage increase, once finalised, will affect workers across multiple sectors including security, government job programme participants, crossing guards, and others currently at or near the existing floor rate.