Professor of Economics and minimum wage consultant Dr. Partha Gangopadhyay while holding public consultation for members of the community in Nadi yesterday highlighted that National Minimum Wage (NMW) is an important tool in alleviating poverty.
Professor Partha added that adjustments in minimum wages are necessary to respond to increases in inflation rate and labour productivity growth in Fiji.
“If inflation rate is zero and productivity growth is zero, there is no need to increase the minimum wages. Since productivity growth is the main driver of the economy, the sectoral minimum wages must be suitably adjusted to give incentives to employees to upskill themselves to further enhance labour productivity growth,” he said.
Professor pointed out that increases in productivity growth and inflation rate will call forth increases in minimum wage both for the formal and informal sectors of the economy.
He added that employers and workers play a crucial role in raising the future minimum wages through productivity growth and can thereby share increased profits driven by productivity growth.
The Ministry will be conducting public consultation for members of the public in Ba on 1st June, 2019 at the Ba Town Council Hall at 9.00am.