The quantum for salary compensation and for minimum salary will be announced tomorrow, after Cabinet meeting.
This statement was made, today, by the Minister of Finance, Economic Planning and Development, Dr Renganaden Padayachy, during the Tripartite Committee Meeting, held at the Sir Atal Bihari Vajpayee Tower in Ebène, attended by several ministers, representatives of trade unions and captains of the private sector as well as representatives of employers.
He recalled that on 20 November 2019, the first discussion was held to determine the inflation rate for 2020 which will determine through consensus the quantum to be allocated for salary compensation. According to the International Monetary Fund (IMF), he said, the global growth rate for the year 2019 has decreased from 3,4% to 1,2% adding that for year 2020, the growth rate is projected to be 3,2%.
Speaking about investments in Mauritius, Dr Padayachy stated that during 2012 and 2015, investments were on the decline adding that the economic situation has now improved. He highlighted that private investments have increased from 13,3% in 2017 to 14,2% in 2018. Unemployment is also on the decrease from year to year, from 7,8% in 2014 to 6,8% in 2019, he stated.
Furthermore, the Finance Minister outlined the various measures taken by Government for the betterment of employees and the population in general. They include: Portable Retirement Gratuity Fund, minimum salary, promulgation of Remuneration Orders to provide for specific conditions of employment in the various sectors of activities including the provision of shift work and vacation leave, increase of 44% in old-age pension as from this year from Rs 6,210 to Rs 9,000. He also highlighted that Government is giving subsidies at different levels such as household gas (Rs 640 million), free university fees (Rs 600 million), and as from January 2020, school books from Grades 1 to 9 will be provided to all students free of cost.
He underlined the need for growth to increase yearly which will help the reduce inequality between the rich and the poor adding that a fair equilibrium between compensation, assistance and competitivity needs to be maintained.
National Wage Consultative Council
The National Wage Consultative Council is also meeting, this afternoon, to finalise the preliminary report as regards minimum salary.
Furthermore, representatives of trade unions and captains of the private sector as well as representatives of employers will meet with several ministers, tomorrow morning, for further discussion before the holding of Cabinet meeting.