NEW MINIMUM WAGE IS JUST A START, SAYS MIN. MYLES

The scheduled raise in the minimum wage could herald a new approach to how the government manages the workforce of the Cayman Islands.

Speaking during a press conference this past Wednesday about the upcoming increase in the minimum wage Hon. Minister for Caymanian Employment Michael Myles declared that this is just one aspect of how the National Coalition for Caymanians(NCFC) administration plans to reform the system.

He had recently announced that the recommended new minimum wage of KYD$8.75 per hour - up from KYD$6.00 - will take effect from January 2026, after the recommendation from the Minimum Wage Advisory Committee was deferred by the previous United People’s Movement(UPM) government.

“The government is using the minimum wage not as a symbolic gesture, but as a tool to uplift individuals and families in real, tangible ways. This decision is about more than numbers. It’s about pulling our people out of poverty and into the middle class. It’s about ensuring that hard work results in basic economic security and dignity,” the minister stated.

Mr Myles said 10,000 people living in poverty in Cayman is not acceptable for both Caymanians and guest workers in the jurisdiction.

“I’ve heard the arguments from political pundits who have said that the minimum wage only affects 2,000 Caymanians and only affects 8,000 guest workers. I’ve heard the arguments that guest workers will now be sending more money home. While I respect the contributions to this debate from all, our government is of the opinion and position that we will not allow 10,000 people to continue to live in poverty and not be paid a decent wage. This is simply not okay,” he stressed while acknowledging the contribution of thousands of guest workers over the years who have contributed to Cayman’s development.

STRATEGY

According to Min. Myles, the minimum wage rise is part of a wider workforce development strategy.

“This aligns with our ongoing work on the National Workforce Development Strategy, which aims to strengthen the Cayman labour force through better access to training, career pathways and employment opportunities. Raising our minimum wage is one part of a larger vision to build a stronger, more inclusive economy that benefits all who contribute to it.”

The chairman of the Minimum Wage Advisory Committee, Lemuel Hurlston, outlined how the KYD$8.75 rate was determined following extensive consultation. “Households favoured $10 per hour, while businesses proposed slightly below $9 per hour. Economic modelling suggested $8.75 as a balanced figure, offering relief to workers without overburdening employers.”

Outlining that future wage reviews tied to inflation every two years were proposed to avoid frequent committee meetings, Mr Hurlston added that while the NCFC government had accepted several core recommendations from their report “we encourage continued focus on the remaining recommendations, especially those that improve transparency, predictability and long term fairness in the system.”

Adolphus Laidlow, the Director of the Economics and Statistics Office(ESO) expanded on who will principally benefit from the new minimum wage when it comes into effect and how it’s expected to impact the economy.

“The beneficiaries essentially are approximately 10,400 employees of which 8,000 are from businesses and another 2,400 from households. Just about 8,000 are non-Caymanians and around 2,400 were Caymanians.”

It’s also estimated that around another 2,500 persons presently earning close to the coming new minimum wage of KYD$8.75 will benefit indirectly from the increase.

On the wider anticipated economic impact, Mr Laidlow said because of the additional KYD $51 million overall cost of increasing the minimum wage, GDP was calculated to increase by 0.9%. “In other words, there is a net expansion as a result of the additional spending.”

A one-time jump in inflation of about 3.1% increase is expected. However, ESO director Laidlow explained that “this is on the proviso that every business increases the minimum wage at the same time and we know it’s not practical for all businesses affected to pass on the entire cost, depending the industry. They’re going to take different time frames to pass on some or all of the costs.”

Overseeing the implementation of the new minimum wage will be the Department for Caymanian Employment and Immigration headed by Acting Chief Officer Danielle Roberts.

“ I want to be very clear. This is not a suggestion. It is a new legal minimum standard for wages in the Cayman Islands and all employers, regardless of sector, are expected to review their payroll practices and ensure they are in compliance by the first of January 2026,” she stated.

A comprehensive information and familiarisation programme is being rolled out by the Department of Labour and Pensions(DLP) to facilitate businesses and employers with the transition to the KYD8.75 minimum wage.

“Over the coming weeks, we will launch public education campaigns to ensure that employees are aware of their rights and how to report violations confidentially. Non-compliance will not be taken lightly. Employers found to be underpaying staff will face penalties, back pay orders and possible prosecution where necessary. We’re also working with DLP to ensure that our grievance channels are easy to access and that every report is followed up in a timely and fair manner.”

THE BIGGER PICTURE

In response to a question from Caymanian Times, Hon. Minister for Caymanian Employment Michael Myles shared his vision of how he perceives the Cayman labour force beyond the raising of the minimum wage. “We have a lot of spending power, a lot of buying power” he said, referring to a recent salary increase for civil servants and the extent of subsidies and other forms of support being provided by government.

Placing a strong emphasis on upskilling the workforce, he stated: “I don’t want Caymanians to settle for minimum wage. I want to make sure that our people are earning even higher than the minimum wage.” Mr Myles also said where businesses felt they were negatively impacted, he is “willing to sit down with anyone and figure out ways on how to help those folks.”

He also emphasised that he would place equal attention on assisting workers on low incomes who are struggling with childcare and other responsibilities.

Mr Myles said he is passionate about life skills training including personal financial management for the workforce.

The employment minister also stressed that a key element of his priorities is ensuring that Caymanians are not only prioritised in the job market but are fully trained and qualified to take on the available roles.