SBA CEO gives breakdown of low wages prior to hike

CHIEF Executive Officer of the Small Business Association (SBA), Senator Dr. Lynette Holder, says prior to the recent wage increase, there were over 10 000 persons earning a salary of $350 weekly, with a group of over 2 000 people earning less than $150 a week.

She made the revelation yesterday during the Brass Tacks Sunday radio programme, which focused on the recent minimum wage hike in Barbados.

Crediting economist Ambassador Dr. Clyde Mascoll for his 2021 research, who assessed information from the Barbados Revenue Authority and the National Insurance Department, she said the two sets of data analysed suggested that there are some 20 710 workers that were considered low wage workers – that is, that would more or less be paid less than $25 000 per annum.

She noted in those stats that 1 632 were receiving between $200 and $250 per week; and another 1 063 receiving $150 to $200 per week...

“And then can you imagine that…2 199 were actually getting less than $150 per week. This is actually happening in Barbados today, that there are people…getting less than $150,”  Holder noted.

The stats also indicated that 2 435 were getting between $250 to $300 per week

Senator Holder said the data indicates that prior to February of last year, of the 20 710 low wage workers, there were many employees earning less than $350 per week.

“A significant number, a significant number of persons were actually earning less than $350 per week.

“So 2 199 under $150; 1 063  under $200; 1;632 under $250; 2 435 under $300; 3 198 under $350. So the total is 10 527.”

Dr. Holder revealed that with the information coming from the BRA and the NIS, these employees are from the formal sector. “So this is what we’re talking about – 10 000 workers approximately that would be at that low income category, and that would have gotten under $350 per week.”

General Secretary of the Barbados Workers’ Union (BWU) Senator Toni Moore said it is important to acknowledge that these workers are from the formal sector.

“... And that’s what the BWU has been saying... we have to push this. The transition of workers from the informal to the formal sector, because it has implications not only for wages, but also has implications for social protection, social insurance, health insurance coverage, all of these things will be impacted.”

(JH)