Review of minimum wage is important: Sawang

THE Minister for Labor and Employment, has emphasized that the review of the current minimum wage of K3.50 per hour is a key priority for her department in the coming year and beyond.
Minister Kessy Sawang, noted that the existing minimum wage remained unchanged since 2014, she highlighted the necessity of revisiting this crucial aspect of labor policy.

“The current minimum wage of K3.50 per hour was set in 2014, and nearly a decade has passed without a comprehensive review. Addressing this issue is paramount, given its significant impact on the livelihoods of our people,” Minister Sawang stated.
She underlined the importance of the minimum wage, pointing out that when the purchasing power of income is weakened by inflation, it adversely affects a substantial portion of the population.

Sawang clarified that determining the minimum wage involves a collaborative effort, with tripartite consultation including the government, employers represented by the Employers’ Federation, and workers represented by the Trade Union Congress (TUC), which includes various affiliated labor unions.
However, Sawang acknowledged the challenges, recognizing potential resistance from employers and the risk of unemployment if the government unilaterally imposes a higher minimum wage.
She emphasized the need for careful consideration to prevent unintended consequences.

Assuring the public, Minister Sawang announced a scheduled meeting in March to discuss the review of the minimum wage and other departmental focus areas. As the chair of the meeting, she emphasized a comprehensive review of Terms of Reference, highlighting the department’s commitment to prioritizing the minimum wage review.

During the dedication service of the department, Minister Sawang presented eight key ministerial focus areas, including the review of minimum wage, labor standards, labor law reforms, skills and productivity enhancement, institutional training and modernization, revitalization of social dialogue through tripartite consultation, support for employment growth, and the development of the labor information market.

Reflecting on recent events, Sawang acknowledged the opportunity to address underlying issues, emphasizing the collective responsibility of citizens, politicians, and departments to build the country.

The dedication service was highlighted as an occasion to align the department’s efforts with the expectations of the public and to seek divine guidance in fulfilling its responsibilities.

Sawang also expressed the commitment to conduct the department’s affairs in a manner aligned with ethical and principled values.