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We must not hide our faces. The timing of the joint Calichoun-Padayach announcement of salary changes last Friday remains clearly political. To assert the contrary is to treat the children of the merciful God as wild ducks. Of course, “The danger is obvious” There was a time when the labour minister assured the workers at large in Parliament and elsewhere that the report on wage revision was ready, especially after the 27 per cent hike in the minimum wage to Rs 15,000 in January 2024. It was a question of when and the quantum.
We can understand that the new posture of the minimum wage beneficiaries has been shaken, numbering more than 141,000 people, whose salary compensation is Rs 1,500 and the general social contribution allocation is Rs 2,000, which is currently consistent with Rs 18,500 per month. Raising the wage scale of those earning between Rs 20,000 and Rs 50,000 per month. As we can also understand the logic, it determines Cleaner and a Accounting Clerk In the private sector, even Management Support Officer In the civil services, the difference between the two may be just a few thousand rupees, without having to make a value judgement on the nature of the job in either case. Hence, there is a strong demand across the trade union hierarchy for a wage rebalancing.
It goes without saying that this final announcement on the eve of the elections, completing a series of interventions targeting different groups of people (retired persons, young people, women receiving employment bonuses, the middle class subject to progressive taxation, civil servants, beneficiaries of the minimum wage, etc.) is widely seen as an election method. Even if no one questions the fact that a temporary relief to a category of essential workers will be given a few thousand rupees next month with retroactive effect for two months, July and August. Or between Rs 1,760 and Rs 3,425.
The government coalition will surely go all out to implement this last populist measure after they were announced in the last budget exercise, which for some will still be a distant memory as it is impossible to be sure of what exactly will be in place. Feel-Good Factor This is expected to happen despite the propaganda on national television. There are certainly political calculations involved, as the beneficiaries of this salary adjustment account for 60% of the private workforce, or 197,042 people; although for the civil service, the Prime Minister was unhappy after announcing a temporary allocation of 5% to civil servants and took a measure before the release of the PRB report in early 2026. Damage Control Sunday, after the socio-cultural rituals.
At present, the private sector is in turmoil. The Mauritius Chamber of Commerce and Industry, the highest body in Mauritius, said at the Government House that at least 50% of companies have partially adjusted their employees’ salaries after the minimum wage increase due to the salary increase in January 2024, while waiting for the minimum wage to increase. Others will follow suit before next month. According to authorities’ estimates, such salary adjustments will have a serious impact on the salaries of private companies, with the impact exceeding 4.5 billion rupees. If some companies can absorb them, others cannot, especially small and medium-sized enterprises, which still benefit from the state’s financial assistance to finance the latest wage compensation, although the state has once again offered to provide financial support to ensure that there is no longer any distortion in the wage table.
However, we should not expect the state to come to the rescue of certain conglomerates with overlapping businesses that have earned billions of rupees in recent years and have already matched pre-pandemic performance.
If the Mauritius Business Bureau insists that ‘Wages should not be seen as a political issue’At the same time, it faces a credibility deficit, and every time its members want to cry “wolf” when faced with a pay review, and every time they present the same arguments to prove the financial fragility of its treasury. The technicians of the public treasury have done this calculation: the profitability of the company has increased by 225% since 2019, while, according to some union members, a debt of Rs 2,100 crore has been eliminated since Covid-19.
From one measure to another, we can question the rationale of the government’s generosity with such an easy and generous cheque book without addressing the cost of living. Economists keep reiterating that the basis for the decline in purchasing power is the depreciation of the rupee since 2019, which has accelerated in 2020. One-time subsidy The Bank of Mauritius injected 60 billion rupees into the state, pumping it into the economic cycle, causing inflation to spiral upward. As a result, households are caught in a vicious circle: any salary increase mechanically pushes up inflation, causing prices to soar in supermarkets and MRAs, which ultimately impose VAT on consumption at the end of the day. What the state gives with its left hand, it takes back with its right hand.
So, what to do? We have to get to the heart of the matter to restore the value of the rupee. Clearly, it is “It’s easier said than done”Experts will say that both the public and business operators must restore confidence in the currency, which will automatically eliminate the foreign exchange shortages that Mauritian importers and travelers still face.
On Sunday in La Louise, the leader of the opposition alliance, Navin Ramgoolam, committed to fulfilling the promises made by the current government after his victory, insisted that resolving this crisis of confidence requires a change of leadership. Head of state. Let’s wait and see. And the Purple leader, Paul Bérenger, admitted that the country’s recovery will be difficult. Should we expect a possible period of austerity?
Regardless, the campaign is clearly underway. We can expect the opposition to go on the offensive as all eyes are on Pravind Jugnauth’s next announcement!
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