Jordan Times
Tuesday, May 2, 2006
Minimum wage to rise by
JD15 starting next month
By Mohammad Ghazal and Mohammad Ben Hussein
AMMAN A task force charged with discussing
workers' salaries introduced a JD15 rise in the minimum wage effective June,
Labour Minister Bassem Salem announced during the country's May Day celebrations
on Monday.
The measure was taken to support the workforce, which is facing high cost of
living and harsh economic conditions, the minister said during a ceremony at Al
Hussein Ben Abdullah II Industrial Estate in Karak.
The committee comprises officials representing the private and public sectors as
well as labour leaders.
Economists believe it was the right time for the government to enforce the
increase, to make up for the rise in the cost of living.
The increase in the minimum wage, from JD95 to JD110, falls short of what
workers had in mind.
Pressured by ongoing increases in prices of basic commodities and the recent
fuel prices hike, the General Federation of Trade Unions earlier this year
petitioned the government to raise the mandatory minimum wage to JD130 per
month.
Meanwhile, lawmakers attached a recommendation to the draft budget calling for
an increase in the minimum wage from JD95 to JD120.
A general increase in the cost of living, double-digit unemployment and a
lingering slowdown in many sectors due to regional crises are compounding the
hardships of the labour class.
Salem said the government would work on a long-term strategy to improve workers'
skills to compete with an influx of foreign workers.
The ministry is also keen to qualify workers and enhance their competitiveness
and performance through its programmes and schemes, the minister added.
Despite claims that most businesses are complying with the law, workers and
labour leaders say many employers still do not pay the current minimum wage.
Many businesspeople think it will be very difficult to implement a minimum wage
due to the economic difficulties currently faced by local industries.
Labour unions believe the minimum wage is one of the most effective tools to
encourage Jordanians to replace an army of almost one million guest workers
engaged in low-paid blue-collar jobs shunned by most citizens.
Unemployment is officially estimated at 13.5 per cent and independently at 27
per cent, while more than one-third of the country's 5.5 million population
lives below poverty line.
Government efforts to trim the public sector, which employs nearly half a
million Jordanians each supporting an average five-member family have
faltered in the past because of political and social sensitivities.
Labour Ministry inspectors earlier this year issued 686 warnings and tickets to
institutions and companies found in violation of the Labour Law.
Others claim raising the minimum wage may encourage further layoffs in factories
already working at half-capacity because of shrinking demand for local products
in regional markets.
The Minimum Wage Law went into effect in late 1999, setting the minimum wage at
JD80. It was increased by JD5 on Jan. 1, 2003, and by another JD10 last year.
Last month, the government lifted fuel subsidies, affirming that the hike would
not cause new hardships due to measures it had taken to offset the effect of
what it described as minimal but necessary increases in prices.
The government announced it would disburse financial assistance to citizens on
low and medium incomes.
According to the plan, citizens whose share in the family's total annual income
is less than JD1,000 are entitled to cash support.