DILI, 11 january 2023 (TATOLI)- Minister of Finance and The Coordination Minister of Economy Affairs assured the implementation of increasing minimum wage will impact the 2023 state budget.
Minister of Finance (MoF), Rui Augusto Gomes said that the revision of the state minimum wage law would have monetary implications for the State Revenue Budget 2023.
“The Coordinating Ministry of Economic Affairs (MCoEA) has prepared an analytical study, and the Ministry of Finance also has its analysis where if we increase the minimum wage it means it will have an impact on veteran subsidies, for example, if we increase 10% then the veteran’s subsidy will also be increased, so this will have implications for the State Budget 2023,” explained Minister of Finance, Rui Gomes after holding a meeting with Prime Minister (PM), Taur Matan Ruak at the Government Palace, this tuesday.
Meanwhile, The Coordinating Minister of Economy Affairs, Joaquim Amaral said the implementation of the minimum wage in 2023 will require every ministry to improve the budget.
“I believe that before my mandate ends in 2023, the issue of increasing minimum wage will be solved and can be implemented in the next coming year because the impact is engaged with the 2023 state budget,’’ said Amaral.
On the other hand, the Chairman of the Timor-Leste Chamber of Commerce and Industry (CCI-TL), Jorge Manuel de Araújo Serano acknowledge that no company wishes to see their workers not live a decent life but the current domestic economic situation will be very difficult for the company.
“Professionally we contract them because we need their labor to work, they are not the ones who need the money but we need them, and the workers support the company to make money. For that they are important to the company,” he said.
He admitted, with the increase in the price of goods in Timor-Leste would be even more difficult for the workers, for such reason, the Serano also agreed to an increase in the minimum wage although it would later have an impact on related companies and increase the unemployment rate.
“If the minimum wage is increased, then companies that employee 100 people must reduce their workforce to only 50 people to ensure good wages, and to maintain their company, they must fulfill this method,” said Serano.
He also asked the related entities in charge of implementing the law to look at the upcoming impact, due to the presence of the private sector itself in investing to create jobs.
According to Serano, the government should find a solution to the minimum wage problem adding that the current cost of living continues to rise all the time, in addition, the private sector must also maintain its business continuity.
Journalist: José Belarmino De Sá
Editor: Nelia B.
