The latest Cayman income survey underlines the need for a boost to the minimum wage, an expert has said.
Simon Cawdery, investment director at Helix Advisory Services, said average earnings figures could camouflage the real number of people living below the poverty line.
The Cayman Islands’ Occupational Wage Survey 2023 Report, which the Economics and Statistics Office released 6 Sept., “shows that the average earnings in some industries are $2,500 or thereabouts a month,” he told the Compass.
“This might seem reasonable from a living perspective, but masks wide differences.
“Some people in the accommodation space are earning just $452 a month, which is surely way below any reasonable definition of the poverty line.
“This indicates how important it is to raise the minimum wage, as living on such earnings in Cayman is impossible.”
The figures showed the average basic earnings a month on the islands, including overtime, was $4,679.
Caymanian workers, on an average of $4,968 a month, earned $768 more than non-Caymanians, who took home $4,200 a month.
The average total monthly compensation for Caymanians was $5,335, compared with $4,615 for non-Caymanian workers.
Cayman’s minimum wage is $6 an hour – equivalent to $12,480 a year for a 40-hour week, with paid holidays.
Labour Force Survey figures released last year showed Cayman’s median wage was $2,999.50 a month, or $35,994 a year.
That means the minimum wage is just over a third – 34.67% – of the median wage.
Cawdery said the Occupational Wage Survey should be “a catalyst” to restart discussions on the appropriate levels for the minimum wage.
‘Honest discussion’
He added it was “great” that the survey, the first of its kind since pre-pandemic 2019, had been undertaken.
“It is essential to produce such reports to enable and facilitate honest and constructive discussion in the community and at policy-making levels,” he said.
Cawdery added that the report also contained good news – including the apparent near-parity in the earnings of men and women.
The survey found men had average earnings of $5,155, with women on $5,012 a month, a difference of just $35.75 a week.
“The data suggests Cayman has a very high pay equality, which stands in contrast to other countries and is a commendable outcome for Cayman,” Cawdery said.
People in professional roles – mainly in the law and accountancy – were the islands’ highest earners on an average of $8,860 a month.
Those in the financial and insurance sectors took home $7,485 a month.
But, at the other end of the scale, those who worked in the hospitality sector earned just $1,789 a month, with employees in restaurants and mobile food services earning a little more at $1,850 a month.
Median basic earnings a month – the mid-point figure – stood at $4,000, $679 lower than the average basic earnings per month.
The median total compensation a month was $4,100, lower than the average monthly total pay of $5,043.
There were 745 survey respondents, including private businesses, the public sector, and household staff, involving almost 16,700 employees – 8,014 non-Caymanian and 7,498 Caymanian.
There were 8,309 men and 7,726 women workers included in the poll, which represented more than 28% of the total employment pool.
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Perhaps the government should remove ALL tariffs on goods that are not produced on island. Every little bit would help. Prices in the food stores are ridiculous.
The government receives enough money.