Minimum Wage in Belize
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MINISTRY OF RURAL TRANSFORMATION, COMMUNITY DEVELOPMENT, LABOUR AND LOCAL GOVERNMENT
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MINISTRY OF RURAL TRANSFORMATION, COMMUNITY DEVELOPMENT, LABOUR AND LOCAL GOVERNMENT
Economic lockdowns and the temporary closure of millions of workplaces due to the pandemic have had enormous effects on labor markets across the world, disproportionately affecting lower-paid workers. The closing down of non-essential economic activities across the world has impacted a huge number of workers. In Belize, 49.5% of workers were employed in the five sectors most directly affected by the closures [1]. Furthermore, all indications are that shut-down policies disproportionately affected lower-paid workers—those in four of the five most affected sectors in Belize earned between BZ$67 and BZ$200 less than the national average [2].
The adverse impact on workers’ incomes and poverty has been huge, and, overall, the crisis has disproportionately affected groups in vulnerable situations. The ILO estimated that in the first month of the crisis, the overall earnings of informal workers globally may have declined by up to 60%. This drop likely led to significant increases in the numbers of working poor across the world. It is estimated that relative poverty among workers in the informal economy worldwide may have increased from 26% to 59% over the first month of lockdown [3]. In Belize, 30.8% of all informal jobs were in ‘Elementary occupations’, with 68.5% of these jobs being performed by men. Women were particularly vulnerable. In 2019, 47% of women were inactive due to family and household responsibilities, with the majority directly dependent on their spouses for financial support. In the face of layoffs, homemakers were unlikely to cope. Young people have also suffered disproportionately, as 40% of them were working in the hardest-hit sectors and 77% were in informal jobs, globally [4].
Overall, the pandemic and its impacts have increased unemployment, exacerbated poverty, and plunged Belize into an economic depression. The Statistical Institute of Belize has provided estimates to suggest a national poverty rate of 52%, the equivalent of 201,616 people living in poverty [5]. Real GDP dropped by more than 14% in 2020, and the sudden fiscal burden of responding to the pandemic reduced the government’s primary balance by more than eight percentage points in 2020 and led to a spike in public debt [6].
In line with its objectives under Plan Belize, the Cabinet has signaled its intention to raise the standard of living for Belizeans by raising the minimum wage. Raising the standard of living for Belizeans is critical for reducing poverty and supporting sustainable development. On November 25th, 2021, the Cabinet gave its approval for the Minister of Rural Transformation, Community Development, Labour and Local Government to conduct a comprehensive review of the Labour Act, including a review of the regulations in relation to the COVID-19 Pandemic. The Ministry was also charged with the formulation of a plan for the gradual implementation of the Government’s commitment to reaching a five-dollar minimum wage.
The current minimum wage of $3.30 per hour came into effect on May 8th, 2012. It is currently applicable to the following categories of workers: (i) unskilled workers employed in the citrus industry; (ii) domestic helpers employed full-time or part-time; (iii) shop assistants employed full-time or part-time (excluding bona fide students who may be employed outside of school hours or during school vacation in premises covered by the Shops Act); and (iv) manual workers (including manual workers engaged in agriculture, agro-industry or export-oriented industries). Additionally, the current minimum wage for bona fide students is $3.00 per hour.