VICTORIA, Seychelles — The government has announced a 7 percent increase in the minimum wage as from April 1, following the first review since January 2021. The decision, in line with the proposal announced during the 2025 budget address, aims to reflect the evolution in prices resulting from inflation and living wage assessments.
With the review, the minimum wage will increase from R38.27 to R40.95 per hour for employed workers. This means for a job based on 40 hours per week, the minimum wage will increase from R6,633.47 to a higher monthly figure. The Cabinet took into consideration economic factors, and Ms Bresson noted that the Cabinet felt the proposed percentage was reasonable for both parties. It must be noted that the government has announced a reduction in business tax rates, in the 2022 budget, alongside this increase.
Principal analyst within the Ministry of Finance, National Planning and Trade, Sophie Vel, revealed that analysis is underway to accurately determine how many employees will benefit from the increase. ‘Expatriates will be more affected by the minimum wage increase,’ Ms Vel said. ‘Based on the preliminary analysis, tourism is one of the sectors where there will be impact, the manufacturing sector.’ The ministry is also examining the impact on small and medium enterprises, which account for the majority of employment in the country, and is expected to publish a full breakdown of beneficiary categories in the coming weeks.
