Coleiro Preca cautious on minimum wage increase

Social Solidary Minister Marie Louise Coleiro Preca said the government was in the process of addressing minimum wage, but not necessarily by increasing the rate.

The Minister's clarificaiton came this morning after reporters asked whether the government was planning on increasing the minimum wage.

Coleiro Preca however said that other measures - such as the reduction in utility bills - was one way of helping minimum wage earners.

"This generates more disposable income, allowing them to improve their quality of living," she said.

During last Monday's edition of current affairs programme, Reporter, presenter Saviour Balzan specifically asked whether she agreed with increasing the minimum wage.

Whilst not explicitly stating that she agreed with this premise, Coleiro Preca said that the minimum wage - as it stands today - was "close to the level of poverty, especially in the case of families".

"We are looking into it... we are addressing these problems," she said, without however specifying whether the solution laid in increasing the rate.

Following her comments, the Malta Chamber of Commerce yesterday insisted that increasing the minimum wage was a "short-sighted approach."

"[The Chamber] firmly maintains that wages are a function of productivity and not of spending power.  It certainly does not agree that an increase in the minimum wage is a viable solution to eliminate poverty," it said.