The national minimum wage will be increased by $2 per hour, from $20.50 to $22.50 for public sector employees only.
This will come into effect on November 1st.
Finance Minister Colm Imbert announced the measure as he delivered the 2025 National Budget in the House of Representatives on Monday.
The increase is expected to cost the Government $75 million in fiscal 2025.
Imbert said with small businesses still grappling with the last minimum wage increase, Government determined that it would not make any further increase, at this time.
He said: “The Government, as the largest single employer of people in the country, is acutely aware of the difficulties endured by persons earning the minimum wage.
“Accordingly, while we do not wish to place additional stress on the small business sector at this time, while continuing to review the national minimum wage for an increase in subsequent years, we will increase the minimum wage earned by public sector employees, from $20.50 an hour to $22.50 an hour, an increase of $2 per hour, or 9.8 per cent.”
The increase is set to benefit 5,100 workers at MTS, 6,900 workers in CEPEP and 6,200 workers in URP, among other minimum wage workers in the public sector.
He said MTS workers, such as security guards, will have as much as $500 additional tax-free income monthly in their pockets, depending on the hours worked.
MTS janitorial staff, who work shorter hours than security guards, will earn an additional $340 per month.