Antigua and Barbuda to raise minimum wage to EC$13 per hour over three years

The Cabinet of Antigua and Barbuda has accepted a recommendation to increase the national minimum wage from EC$9 to EC$13 (approximately USD$4.80) per hour, with the adjustment to be introduced gradually over a three-year period to balance higher earnings for workers with the needs of businesses.

The proposal was presented to Cabinet by the National Minimum Wage Advisory Committee, which reviewed the adequacy of the current wage level and examined economic conditions and the rising cost of living.

Director General of Communications in the Office of the Prime Minister, Maurice Merchant, said the committee recommended the increase “in order to better reflect current economic considerations and conditions and the rising cost of living.”

Cabinet accepted the recommendation but agreed that the adjustment should be phased in over three years to allow employers time to adapt while still ensuring workers see a steady increase in wages.

“So Cabinet has agreed that the adjustments should be implemented in phases, and that will be over a three-year period,” Merchant said. “Allow businesses and employers adequate time to adjust while ensuring that workers benefit from a steady and meaningful improvement in wages.”

Officials said the exact structure of the increases has not yet been finalized. Cabinet has asked the advisory committee to conduct further consultations with stakeholders and experts before returning with a proposed timeline for the incremental adjustments.

The consultations will consider how the wage should progress from the current $9 hourly rate to the final $13 level.

“Cabinet awaits the recommendation of the committee in that regard,” Merchant said, noting that the government wants the increase to provide “maximum benefit” to workers while minimizing disruption to businesses and the wider economy.

According to data cited during the briefing, about 7,264 workers currently earning between $9 and $12 per hour are expected to be directly affected by the change within a national workforce of more than 45,000 people.

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Merchant said the phased approach is intended to prevent potential job losses in sectors that may struggle to absorb the increase immediately.

“To increase from $9 to $13 at one fell swoop may result in retrenchment,” he said, adding that the government believes the gradual implementation will help protect jobs while raising incomes.

Officials said the policy reflects the government’s commitment to improving living standards while maintaining a stable economic environment.