Mercelina says a rise beyond annual indexation requires assessment, while temporary agency regulation, dismissal reform and unemployment benefits remain under development.
PHILIPSBURG:--- Prime Minister Dr. Luc Mercelina has stopped short of committing government to a 30% minimum wage increase, telling Parliament that such a change would require advice and an assessment of its effects on employment, businesses and prices.
Responding to MP Ardwell Irion while acting for VSA Minister Claret Connor, Mercelina explained that the existing framework provides for annual minimum wage indexation using the second-quarter Consumer Price Index published by the Department of Statistics.
He said the government must also periodically seek advice on whether the minimum wage should rise beyond that adjustment.
The Department of Labor requested that advice in March 2026, and it remains awaited.
Thirty Percent Increase Not Approved
Mercelina said the law provides a route to establish a new hourly minimum wage by national decree containing general measures.
However, he did not announce approval of a 30% increase, a new hourly rate or an implementation date.
His answer establishes that a larger adjustment is possible within the framework, while leaving the scale and timing dependent on further advice and assessment.
Temporary Employment Agencies Face Proposed Regulation
Responding to MP Darryl York on labor-sector problems, Mercelina said legislation to regulate temporary employment agencies is being finalized.
He described gaps in the sector that can facilitate illegal employment and exploitation, including situations where labor rules were not fully applicable or consistently followed.
Once completed, the proposal would move to stakeholder consultation and legislative review, with operational preparations for implementation.
Repeated Short Contracts Remain a Concern
Mercelina acknowledged longstanding concerns about successive temporary contracts and the need to balance flexibility with worker protection.
He said the Civil Code changes regulating employment contracts took effect in 2022 and are being monitored for subsequent evaluation.
The presentation did not announce a new restriction on successive contracts or a date for completing that evaluation.
Dismissal Reform and Unemployment Benefits Linked
The ministry is also considering reviewing and possibly streamlining dismissal legislation.
Mercelina said that work is in its initial phase and would proceed alongside the establishment of an unemployment benefit scheme.
Other initiatives include targeted inspections against illegal employment, administrative enforcement tools, modernizing employment permit rules, and stronger dialogue between government, employers and workers.
Assistant Mediator Position Vacant
Mercelina confirmed that the Department of Labor's assistant mediator position is vacant.
The government mediator receives administrative, policy and legal support from colleagues when required.
For employees facing rising living costs and insecure contracts, the presentation outlines several avenues for reform. It does not yet establish when a larger wage increase, unemployment benefits, or new agency rules will become available.