The Barbados Employers’ Confederation (BEC), saying it supports a ‘fair and balanced’ approach to minimum wage determinations, Tuesday called for all future minimum wage adjustments to go through the Minimum Wage Board MGB).
‘Let the Board do the work it was established to do-so decisions concerning minimum wage are fair, sustainable, and truly serve the best interest of workers, employers and the national economy,’ the BEC said in a statement.
Earlier this month, the Ministry of Labour, Social Security and Third Sector indicated its intention to increase the national minimum wage and the sectoral minimum wage for security guards by two per cent, effective January 21, 2026.
The proposed changes will move the national minimum wage from BDS$10.50 (One BDS$=US$0.50 cents) to BDS$10.71 per hour and raise the minimum for security guards from BDS$11.43 to BDS$11.66 per hour.
Labour Minister Colin Jordan said the increase is intended to ease pressure on the lowest-paid workers without destabilising businesses and that Cabinet had signalled its intention to introduce annual indexation months ago as part of the 2025 Budget framework.
He also disclosed that work is under way through the Minimum Wage Board to assess the impact of the June 2025 increase and to develop a more scientific, Barbados-specific indexation model, with Cabinet ultimately expected to consider the Board’s recommendations.
But in its statement, the BEC said that it supports a fair and balanced approach to minimum wage determinations, one that protects the welfare of workers while safeguarding the viability of businesses across the nation.
‘However, we note with concern the recent Budget announcement of predetermined minimum wage increases scheduled for 2025 and 2026. This decision, made before the Minimum Wage Board has completed its mandated review, departs from the established process of tripartite engagement and pre-empts the Board’s critical role in analysing economic data, consulting stakeholders, and subsequently presenting recommendations for any proposed minimum wage adjustments based on the evidence’.
The BEC said that the importance of respecting this process noting the MWB was created to ensure decisions are informed, inclusive and sustainable.
‘Implementing increases without comprehensive analysis risks significant economic consequences. Minimum wage changes do not occur in isolation-they create ripple effects that raise operating costs, which might put a strain on business sustainability, and, regrettably, threaten job creation – or, in severe cases, result in job losses.
‘We reaffirm our commitment to fair and equitable pay. At the same time, adjustments to the minimum wage must be approached with careful consideration, ensuring they are balanced against broader economic realities and sector-specific factors critical to sustaining growth and employment.’
The BEC said that if the minimum wage is subject to frequent, unreviewed annual increases, ‘it introduces instability and unpredictability into the market, which ultimately risks placing undue pressure on the very businesses and workers the policy is designed to support’.