Republic of Mauritius- Impact assessment report highlights NMW positive impact on economy and population

The Minister underlined that according to the report, the NMW has positively impacted on the lives of low-income families as well as on the economy of the country. He recalled that the NWCC was mandated to do an impact assessment on the implementation of the NMW in January 2018. The report, he said, is based on information and data from the Statistics Mauritius, the Mauritius Revenue Authority, and different relevant authorities and institutions.

The results of the report, he indicated shows the commitment of the Government to protect workers at the lower rung of the social ladder so as to improving their standard of living and also to enable them lead a decent life. The report takes into consideration the impact of the NMW on economic growth, wealth and income distribution, wage ratio, employment, and compliance.

As regards the rate of employment, the Minister said that there is an increase in the employment rate from 545 100 workers in 2017 to 546 500 workers in 2018, that is a total of 1400 jobs. He further observed that contributions made to National Pension Fund increased from 290 368 in December 2017 to 313 778 as at June 2018. He also pointed out that there has been an increase in the evolution of salary distribution and a decrease in income inequality thus reducing the gap of inequality between the rich and the poor.

Speaking on the cases of non-compliance as regards the implementation of NMW, Minister Callichurn said that the rate stands at 10.9 % while adding that the figure stands at around 30% in other countries across the world where the National Minimum Wage has been implemented. Nevertheless, he reassured the population that the Government is taking all necessary actions to ensure full compliance with the NMW.

The Minister also announced that a technical committee has been set up to analyse problems and non-compliance mentioned in the report and to come up with recommendations.