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Acting Gov. Joshua Tenorio on Friday said lawmakers should consider raising the $9.25 hourly minimum wage for Guam with the cost of living “escalating dramatically,” and this comes months after the business community vowed they will reinvest in their employees if they get a tax cut. The Republican-led Legislature approved a tax rollback for big businesses, a hard-fought provision in the fiscal year 2026 budget for the government of Guam. Tenorio didn’t have a specific dollar figure in mind for any wage hike but pointed to a need for a study. “I think we do it fast because people need to be able to have decent standard of living, to be able to stay on island,” he said. The acting governor raised the possibility of a wage adjustment during Friday’s conference hosted by University of Guam graduate students titled “Strengthening Democracy: Civic Engagement in Guam and the Pacific.” He went into further detail, in an interview with the Pacific Daily News afterward. Tenorio gave the example of a meal he bought Friday for his mother and nephew, who were both at home sick. “I went to Wendy’s. Got her salad, got him, you know, his nuggets and fries, drinks. And the bill was $35,” he said. “Obviously we also have to confront in our society: what is realistic?” Employees need to be able to afford to eat lunch, said Tenorio, who is seeking election as governor in 2026. Escalating housing costs are another issue, he said, and raising wages might help stabilize Guam’s economy into the future. The last time Guam raised its minimum wage was on Sept. 1, 2021, making it $9.25 an hour. That’s when the second 50-cent increment of a $1 increase went into effect. Gov. Lou Leon Guerrero signed off on that wage hike. Lawmakers suggested a raise to as much as $11 or even $15 an hour in 2023. That was met with a resounding “no” from business sector representatives during a briefing with senators in May 2023. The acting governor on Friday said getting “decent wages” could help attract employees to sectors of the economy that are seeing a “scarcity of workers.” Young people need to be trained up to enter the workforce, and employers need to be able to attract them, he said. ‘Big tax cut’ “The reality is, is that we’ve just given a big tax cut to businesses,” he added, referring to the recent business privilege tax rollback from 5% to 4.5% by Oct. 1, 2025 and to 4% by Oct. 1, 2026. “Businesses, if they’re going to turn around and reinvest in their businesses, part of the investment consideration should be with their employees, too,” he said. Tenorio said he believed that historically, Guam minimum wage increases have expanded the economy, and given businesses more customers who could afford their products. He said he’d like to tap economists at UOG to go in and take a look at what a reasonable wage increase might be, and also what the impacts would be. The first challenge will be finding a senator who is willing to pick up the issue, he added. “We in the government need to understand that and look at the numbers fast and be able to meet what the expectations of the general public is,” Tenorio said. “I think that a good portion of the general public is looking for an increase.” Guam residents paid more for food, utilities, new vehicles and other basic consumer goods and services in the first quarter of 2025 compared to a year ago, but much of the pressure is on medical care costs that soared by 15.7%, the PDN reported in October. The latest consumer price index, a key inflation gauge, increased by 5.8% in the January to March period compared to the same quarter a year ago, based on the latest Guam Bureau of Statistics and Plans’ data.
