By Janelle Cowo

Copyright sanpedrosun

On Tuesday, September 16th, Prime Minister Honourable John Briceño delivered his State of the Nation address at the University of Belize campus in Belmopan City. He spoke about the country’s progress and challenges in the economy, jobs, and national security. One announcement that drew considerable attention was another planned increase in the minimum wage from $5 to $6 per hour. While employees would take more money home, some stakeholders and critics argue the move could negatively affect the local economy.

Several stakeholders, who asked not to be named, said that although the increase benefits the working class, the economy, particularly on the mainland, is not strong enough to sustain it. One business owner explained that paying employees more will require raising the cost of products and services. “This can lead to a higher cost of living,” the source said, adding that instead of helping, the policy may fuel inflation as goods and services become more expensive.
Others expressed concern that businesses may reduce staff working hours to offset higher wage bills. Employees could take home the same amount rather than seeing additional income in that case. “The more you earn, the more tax you may pay as well,” one employee noted.
However, the impact on the tourism sector may be less noticeable. In areas such as San Pedro Town and Placencia Village, the cost of living is higher, and wages are generally above the minimum. According to residents and stakeholders, the new increase will unlikely make a difference in those communities.
The first minimum wage increase in many years took effect in 2023, raising the rate from $3.30 to $5 per hour. That policy was signed into law as Statutory Instrument No. 170 of 2022. No date has yet been announced for introducing the new $6 rate.
Honorable Tracy Panton, leader of the Opposition, dismissed the prime minister’s address, calling it “lame” and citing “stark omissions.” In a statement, she said the prime minister failed to address the high cost of living, high fuel prices, the lack of housing solutions, the failing public health system, and other issues. “This Briceño government is unravelling under the weight of its own self-inflicted failures. Its demise has already begun, because no spin, no speech, and no report card can hide the plain and unadulterated truth,” she said.