Categories: Business

JCTR cautions of job losses after minimum wage revision

The Jesuit Center for Theological Reflection (JCTR) has cautioned that the increment in minimum wage may lead to job losses for domestic workers as new wages may be beyond the financial capacity of their employers.

The center has also noted that the increment in the minimum wages will provide some relief on low income households.

In a statement issued to Money FM News, the center states that the revised minimum wage will help to close the income gap between the rich and poor.

The JCTR has however observed that the increment in the minimum wage may lead to loss of some jobs for some domestic workers as the new wages may be beyond the financial capacity of their employers whose salaries have not received a corresponding increment.

“In such a situation, the Centre urges that ways on how the minimum wage could be met should be explored between employers and employees to ensure that justice prevails but more also to avoid job losses. The JCTR has observed that despite the wide gap between the cost of living and the revised minimum wage that still exists, the increase will help mitigate domestic workers and other category of workers affordability of basic essentials such as basic food and services (electricity, water),” reads the statement.

The JCTR is therefore urging government to implement and lead public sensitisation and awareness on the revised minimum wage.

“Making the Public aware about the revised minimum wage is key to successful implementation of the revised minimum wage law as some employers and employees do not understand what the law means and what it entitles”, observed the JCTR.

The Centre has since recommended that in situations where employers could have a challenge to meet the revised minimum wage, they should mutually engage their employees to explore ways that would ensure their obligation is met and justice prevailed.

JCTR has further urged government to come up with a sector minimum wage so that workers in other sectors could also be protected from exploitation by their employers.

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