Wage Compensation: Reaz Chuttoo Discusses the Deterioration of the Middle Class

On Sunday, December 14, 2025, at 10:00 AM, the issue of the monthly wage compensation of Rs 635, which will be given to all employees earning up to Rs 50,000 in base salary, continues to provoke reactions from the trade union movement. Reeaz Chuttoo, spokesperson for the Confederation of Public and Private Sector Workers (CTSP), expressed deep dissatisfaction with this amount.

"The government has merely replicated last January's formula," he stated, disregarding the worsening cost of living. The union representative emphasized that this sum falls far short of workers' expectations and fails to address the current economic pressures. With the imminent removal of certain measures, such as the Generalized Social Contribution (CSG), "a simple employee earning Rs 30,000 will not be able to cope with inflation. The household budget is taking a significant hit," he explained, referring to the gradual impoverishment of the middle class.

Reeaz Chuttoo believes this situation could drive more workers to seek a second job or engage in side activities, directly impacting the local job market. "It's not that Mauritians do not want to work anymore, but they are being left with no choice," he warned, cautioning against an increased reliance on foreign labor in certain sectors.

The union representative is also skeptical about tripartite discussions, lamenting that no union proposals have been accepted. Finally, he insists that this compensation, limited to salaries up to Rs 50,000, will not improve the purchasing power of employees.