‘Minimum wage will only increase if unions, employers agree’ – Scicluna

Finance minister says minimum wage will only increase if employers, unions agree on it

Finance minister Edward Scicluna said that the government will only increase the national minimum wage if trade unions and employers’ associations jointly green-light such a move.

“Unions and employers had agreed to introduce the current system back in 1991, and unless they both agree to change it again then it will stay as it is,” Scicluna told MaltaToday.

Malta’s minimum wage – currently around €672 a month – is adjusted annually based on the rate of inflation. However, Caritas this week urged government to gradually raise the minimum wage over a three year period, after a study revealed how some low-earning families cannot keep up with the most basic costs of living, even with benefits added to the equation.

Prime Minister Joseph Muscat, who has previously warned that raising the minimum wage would be “irresponsible”, said after the publication of Caritas’ report that he would welcome a debate over it.

Scicluna argued that government doesn’t want to burden the private sector and that the majority of Maltese people earn much higher salaries than the minimum wage anyway.

“Nobody is stopping employers from paying their staff higher wages than the minimum wage, and indeed employers will pay higher salaries to competent employees,” he said.

When asked whether he thinks Malta’s minimum wage benchmark is high enough, Scicluna responded that it is on roughly the same level as that offered in Italy, Spain, Portugal and Greece – competitors in the manufacturing and tourism industries.

“Ultimately though, salaries should be increased through education, skills training and an increase in productivity,” he said.