Plans to increase Cayman’s minimum wage are on hold for now, Immigration Minister Michael Myles has confirmed.
The last government had indicated that the current $6-an-hour threshold would be increased to $7 for certain sectors on 1 July 2025.
But the general election and the subsequent formation of the National Coalition for Caymanians means that plan is on hold as the new government rethinks the issue.
Myles said he and his colleagues would be fully examining the research of the Minimum Wage Advisory Committee – which recommended $8.75 an hour – before making a decision.
“That is something we are still looking at. I was given a document from 2023. It is so thick, it is like a book and I am still trying to wrap my head around that.
“The jury is still out on where that’s going to go, but it is a great document,” Myles said on Compass TV’s Forefront talk show on Thursday.
“Wonderful research was done, and the government paid a boatload of money to produce that document.”
Read more about Cayman’s minimum wage:
The Cayman Islands government spent $53,638.15, equivalent to four-and-a-half years wages for a minimum wage worker, on a vast consultation exercise, canvassing the opinions of more than 10,000 people throughout 2023.
The Minimum Wage Advisory Committee produced a 154-page report detailing its discussions with every business group on the island and what it described as a “long and intense” negotiation on the principle that the new wage must be fair to employers as well as staff “irrespective of class, status and gender”.
A proposed increase to $8.75 would have benefited more than 10,000 people, including over 2,000 Caymanians, according to the report, which indicated the current rate was below the poverty line.
The Compass reported extensively on the challenges faced by domestic helpers, security guards, landscapers and janitors living on baseline wages in a special series last year, at a time when an increase in the base wage was being contemplated.
The independent coalition government at the time announced it would not be following through with the recommendation, with then Labour Minister Dwayne Seymour suggesting more research was needed and another report would be commissioned.
However, he indicated that the wage for hospitality workers would be increased to $7, from $4.50 an hour, from July 2025. He later suggested this would be broadened to include “construction and security services and other such industries”.
Imported poverty
Myles confirmed to the Compass that the decision on minimum wage is being deferred until the new government – which has been in place for a little over six weeks – has had a chance to discuss it.
The issue of ‘imported poverty’ is one of the challenges that government is seeking to address initially through immigration reform.
The amount a foreign worker must earn before being permitted to have a dependent spouse or child on their permit is being increased to $5,000 a month. And new restrictions are planned to make it more difficult for permit holders to switch professions.
Myles added on Forefront, “What we are seeing is that a person comes to the island on a work permit, and they’re a landscaper, domestic helper, or whatever, and then all of a sudden, within a month, they’re changing work permits …”
He said this was clogging up the immigration system and driving down wages, making it difficult for Caymanians to take jobs in certain industries. Some of this is fuelled by immigration from struggling economies, meaning workers arrive in Cayman prepared to accept a wage that would be impossible for a local person to take.
“There’s a lot of these folks who will work for literally anything.
“We’re also seeing that a lot of these people are also being taken advantage of, because now you have unscrupulous employers that are not paying pension, health insurance or not paying them, period.
“We’ve also seen people coming into the country from as far as the Philippines and Malaysia and India on a work permit, and when they get here, the organisation has no work for them.
“All of these changes are to ensure that people are no longer doing this stuff, because we are importing poverty at this point. We need to now move to a point where we’re holding employers accountable.”
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Ah finally something that could quickly help our Caymanian people. It would help with food, rent, gas ect but he won’t do it. This shows you the truth.
The government spend tons of money on a report just to shelve it. Idk who is supporting this guy lately. We need to lift up our community and it’s not by paying poverty wages. We will be in 2026 with $6 minimum wage for locals and 50 years for expats to become citizens. At least he is treating us and them the same right now.
He could at least come out and set a minimum wage for Caymanians of $20 an hour and then leave it at $6 for expats.
This is a national disgrace, and the remark that “some people will work for anything” might be overheard in a bar but to come from a Govt. Minister is simply unacceptable. I recall that the last time this issue was raised in the public domain it was mentioned in a public forum that some Govt employees employ large numbers on minimum wage. If our current Government wishes to be recognised as fairly reperesenting all Cayman residents and not just Caymanians, this issue must be addressed without further delay.
Here are a few of the top work permit occupations: Domestic Helpers 3,955, Janitors 2,175, Food Service (wait staff) 1,684. Just those three are 7,814 work permits. The list goes on. And that list is about 70% of the Work Permits issued. They are all the jobs that service our economy. Let’s do have a a good minimum wage, but this will result in our cost of living increasing. It’s not a reason to NOT increase wages, but something has to give. The idea of increasing Caymanian minimum wage will disadvantage our people! The Minister is already saying “some people will work for anything”
Perhaps Mr Miles should try living for one month on $220 to include food, transport and accomodation, that doesn’t even come anywhere near just his expense allowance!.