GREAT BAY:--- Minister of Public Health, Social Development & Labor, Cornelius De Weever has approved the indexation of the minimum wage as of January 1, 2014. In keeping with his Decent Work Policy, Minister De Weever believes that a balanced approach is needed when dealing with issues of the labour market.
This is the second time during his tenure that Minister De Weever has indexed the minimum wage. The minimum wages were indexed as per January this year with 4.7% to become Naf. 8.33 per hour for all workers 21 years and older based on a 40 hour workweek.
As of January 2014 the hourly minimum wage will be indexed with 2.8% and will thus become Naf. 8.56 per hour for all workers 21 years and older based on a 40 hour workweek.
The present decision of the Minister to once more index the minimum wages is based on the minimum wage legislation which call for an annual indexation of the minimum wage unless special circumstances dictate otherwise. The Minister of Public Health Social Development & Labor has the authority to index the minimum wage based on article 13, paragraph 1 of the Landsverordening minimumlonen. In accordance with this provision, the minister may, if the statistics provided by the Bureau of Statistics (STAT) indicate that the consumer price index (CPI) figure for August of the current year, compared with the figure for August of the preceding year has changed, establish a new minimum hourly wage.
This is not an increase in, but an adjustment to the minimum hourly wage, based on the increase in the consumer price index (CPI). Minister De Weever points out that prior to his efforts to help maintain or at least prevent the purchasing power of the working man and woman minimum wage earner from decreasing, no indexation has taken place since 2008.
Minister De Weever consulted with the Social Partners in the Tripartite committee prior to have taken this decision.