Salary Compensation: Unions Demand End to Rs 50,000 Threshold
A tripartite technical meeting regarding salary compensation for the year 2026 took place on Wednesday, November 26, 2025, in Port-Louis, chaired by the Minister of Labour and Industrial Relations, Reza Uteem.
The meeting brought together key stakeholders, including officials from the relevant ministry and Statistics Mauritius, as well as representatives from Business Mauritius and the unions, to exchange their views on the economic indicators for the upcoming salary compensation exercise in 2026.
The Minister of Labour emphasized that, according to Statistics Mauritius, the projected inflation rate for 2025 stands at 3.7%, considering the figures from October and projections for November and December.
He noted that representatives from the private sector highlighted the challenges that businesses are currently facing, pointing out that some may not be able to absorb an increase in wage costs and could risk closure. Concerns were also raised that any increase in salary compensation could impact consumers due to rising prices.
Stakeholders requested the government to provide additional support to small and medium-sized enterprises (SMEs) and export-oriented sectors. Reza Uteem reminded them that, as announced in the 2025/2026 budget, the government is already implementing support measures for SMEs and export-oriented businesses.
As for union representatives, they stressed the need to ensure adequate pay for employees in light of the rising cost of living, with the Minister noting that they contested the estimates from Statistics Mauritius. According to him, their considerations are based on the price increases of certain products, which differ from the standard basket used by Statistics Mauritius.
The Minister also mentioned that several unions have made proposals regarding the amount of salary compensation and requested that it be granted to all employees, rather than being limited to those earning less than Rs 50,000.
All concerned stakeholders are invited to submit their final recommendations by Monday, December 1, 2025. Once all submissions are received, the relevant ministry, in collaboration with the Ministry of Finance, will analyze the data and convene another tripartite meeting to announce the amount of compensation.
