Paulina Quintao – The Secretariat of State for Vocational Training Policy and Employment (SEPFOPE) is currently working together with the Timor-Leste Industry Commerce Chamber to conduct reseach on the price of basic necessities in the market as part of a review of the country's minimum wage.
SEPFOPE's General Director, Jacinto Barros Gusmao, said the research was important as it would help the the government assess the minimum wage policy in relation to the price of goods and people's needs. The minimum monthly wage in Timor-Leste is currently set at $115.
"The outcome of the preliminary research shows that the minimum wage is not enough, therefore the policy needs to be improved," said Gusmao at his office in Kaikoli, Dili.
Once the research is completed, the findings will be presented to the Council of Ministers to decide on the minimum wage based on goods prices in the market. Gusmao said there seemed to be some confusion about the minimum salary, as $115 was supposed to be an initial salary rather than a permanent wage.
It is also intended for unskilled workers who may lack on-the-job experience or technical expertise. "The $115 salary is for new workers, but after working for many years they would definitely gain lots of experience and their salary should be raised," he said.
According to Gusmao, another serious problem with the implementation of the minimum wage policy was that many companies had low revenue and therefore struggled to pay their staff.
In 2012, the National Commission for Labour (NCL), the Labour Association, Timor-Leste's Industry Commerce Chamber (CCITL) and SEPFOPE created a policy to establish the minimum wage for unskilled workers. The policy was made based on research conducted by NCL on labour market conditions at the time.
President of Commission D (responsible for for economy and development affairs) MP Jacinta Abucau Pereira called on the government to review the current minimum wage so that it was more in line with the cost of living. "The minimum wage [of] $115 isn't realistic anymore as goods prices in the market keep increasing," she said.
Pereira therefore urged the government to raise the minimum wage from $115 to $150 a month so that workers could meet their basic needs.
Worker Juandina da Silva said her $115 monthly salary wasn't enough to support her daily needs. "The salary is not enough as the goods prices in the market are very high," she said.
Timorese culture also places a strong emphasis on family and meeting these obligations can often be a heavy financial burden.
Source: http://www.thediliweekly.com/en/news/news/13792-government-set-to-review-minimum-wage