Miguel Mansur warns of minimum wage increase costs

ORANJESTAD — Former politician Miguel Mansur questions how the government intends to finance a minimum wage increase without placing additional pressure on businesses, consumers and public finances.

According to Mansur, 20,526 private-sector workers earn below the monthly subsistence minimum of Afl. 2,683. However, he notes that these figures exclude tips, particularly in the hotel and hospitality industries.

Mansur estimates that an average monthly wage increase of Afl. 400 would cost the private sector approximately Afl. 123.2 million annually, including additional employer expenses. He argues that reducing corporate profit taxes would not sufficiently compensate businesses.

He also warns that new government financial commitments could further strain the budget. With nearly Afl. 2 billion in annual revenue, Mansur calls for government reform, spending reductions and a sustainable financial plan.

The former politician acknowledges that workers deserve better wages but warns that, without proper planning, businesses and consumers may ultimately bear the costs.