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Minimum wage review continues

Minimum wage review continues
Minimum Wage Consultation in Suva on May 16, 2017. Photo: MONICA AGUILAR.
May 18
10:02 2017

The issue of minimum wage is very controversial and it requires caution, says consultant, Professor Partha Gangopadhyay.

The University of the South Pacific professor is leading the National Minimum Wage review and Wages Regulations Public Consultation around Fiji.

Yesterday in Suva, Professor Gangopadhyay emphasised the need to focus and understand the impact of increasing the minimum wage taking into account its effect in the economy.

Some of the things to consider are the inclusive development in the country, wage and income distribution and the poverty rate, he said.

He added that there is an inverse relationship between the wage and economy.

As the wage rises there would be a decrease in the economy which is a major risk.

Professor Gangopadhyay also highlighted that there are two different scenarios involved in considering the minimum wage.

The main focus of the review is to reduce the poverty rate in Fiji and in doing so, there needs to be an increase in the real wage.

But increasing the real wage could also destroy employment, he said.

“Incorrect minimum wage can backfire upon the very people that minimum wage is meant to protect,” he said.

Setting the correct minimum wage is important for further enhancing the efficacy of Labor Market in Fiji and promoting inclusive growth, said Professor Gangopadhyay.

Feedback:  selita.bolanavanua@fijisun.com.fj

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