PM Says Minimum Wage Increases Come July

NASSAU, BAHAMAS – Despite hefty borrowing, the Prime Minister also announcing several relief measures he says will ease the impact of inflation on average residents, help grow the economy and expand opportunities for Bahamians.

Berthony McDermott has the story.

The prime minister laying several initiatives he says will cushioning the impact of the rising cost of living.

Topping that list, a rise in the minimum wage set to take effect in July.

“We also believe that the rate of minimum wage needs to increase because of the general erosion of spending power of ordinary Bahamians – an imperative which has been made more urgent by the current level of inflation,” Davis says.

“To this end, we have submitted the proposal to BPSU to increase minimum wage in the public sector with incremental increases starting in July 2022.”

Additionally, Davis says his government has engaged with union leaders for a contributory pension plan as a significant number of public servants are without a pension plan.

The Davis administration is also providing funding to increase salaries for teachers and to pay a retention bonus to teachers and nurses.

The prime minister also announcing a 10 percent increase in funding for Non-Governmental Organizations (NGOs) across the board including the feeding programs headed by Singing Bishop Lawrence Rolle and Great Commission Senior Pastor Bishop Walter Hanchell.

These organizations among those that will also see a tax break in this budget cycle.
“Under this new budget, all property owned by religious organizations, trade unions, civic organizations and burial societies will now be exempt from the payment of Real Property Tax.”

“This reduction in taxes will put money back in the pockets of the entities to allow them to further their reach in communities.”

Davis also acknowledging the pressing need to improve national healthcare which was emphasized throughout the COVID-19 pandemic.

As a result, the Davis administration allocated $10m for catastrophic healthcare.

“This means that, for the first time, the Government can provide meaningful assistance to long-term dialysis patients, heart patients and others facing serious medical issues,” Davis says.

Additionally, a $150m loan has been facilitated to construct Grand Bahama’s new hospital.

He said additional funding has been allocated for the country’s 50th independence next year and an additional $6m to purchase new vessels for the Royal Bahamas Defence Force.

Then there’s the creation of a Family Island Development Trust Fund.

“We have allocated 10 percent of overall revenue collected in the Family Islands from property tax and road traffic fees, to the creation of a Family Island Development Trust Fund in the amount of $200 million,” Davis adds.

This fund is expected to facilitate the government in making immediate and significant investment in Family Island infrastructure.”