The Briceno government’s minimum wage increase masks a deeper economic reality — one where poverty grows despite the promise of progress.

By: Omar Silva | Editor/Publisher

National Perspective Belize -Digital 2025

www.nationalperspectivebz.com

Belize City: Friday 30th May 2025

The Briceno administration has proudly reaffirmed its commitment to raising the national minimum wage from $5 to $6 per hour under its “Plan Belize 2.0” agenda. On the surface, this policy sounds like progress — a dollar more per hour, more dignity for workers, and a supposed step toward poverty alleviation.

“But scratch beneath that surface, and a harsher truth emerges.”

Since the PUP took office in November 2020, the cost of living in Belize has spiralled upwards. In 2020, a family could manage a small grocery run with $40 — today, that same basic basket costs nearly $150. Chicken and meats, once daily staples, are now luxuries. Even basic produce like potatoes, onions, green peppers, and fruit are now sold by the pound at excessive rates.

Consider the real-world math: a poverty-level room — a cramped 12x14 space with a single twin bed — now rents for $150 per week. Water bills average $40/month, electricity the same. A short-stop on a municipal bus is $2.50, and the same ride via taxi is $10. And despite all this, wages were stuck at $5 per hour until now.

So, what does the $1/hour increase truly offer?

The Hard Truth: Nominal vs. Real Income

Raising the minimum wage doesn’t guarantee workers have more money to spend — especially if prices for bread, rent, and public transport rise just as fast, or faster. This is what economists call the “purchasing power trap.” Workers earn more on paper, but in real life, they continue to fall behind. The extra $1 vanishes into the same rent, the same high utility bills, and the same inflated groceries.

Without inflation controls, this increase is a nominal adjustment, not a meaningful gain.

Job Cuts and Price Hikes: The Small Business Strain

Small businesses, especially those already struggling, may not absorb this wage hike quietly. Many will respond by cutting hours, reducing staff, or raising prices — passing the burden on to workers and customers alike. This could easily leave some workers earning $6/hour part-time instead of $5/hour full-time.

Informality Breeds Inequality

Over 50% of Belize’s workforce operates informally. From domestic helpers to gig workers and market vendors — these Belizeans are excluded from formal wage structures altogether. Raising the minimum wage doesn't change that. Without labour formalization, these reforms are meaningless to those who need them most.

No Safety Net, No Enforcement

Enforcement is another story altogether. Belize’s labour inspection regime is weak, under-resourced, and often politically influenced. Employers in construction, tourism, and agriculture often flout labour laws with little consequence. The new wage law, without proper inspection, becomes another paper victory, not a pay check improvement.

Wage Illusion Is Not Justice

In economic terms, this situation creates wage illusion — the idea that workers are doing better simply because the hourly rate is higher, when in fact, their real circumstances remain unchanged or worse.

To prevent this illusion from becoming a source of national frustration, the minimum wage increase must be part of a broader economic reform package, including:

• Price control mechanisms for basic goods
• Transport and utility subsidies for low-income households
• Support for small and micro-enterprises to sustain employment
• Formalization of the informal economy
• Strengthened labour enforcement and legal recourse

Conclusion:

The Belizean worker deserves more — not just in hourly earnings, but in real, lived dignity. Raising the minimum wage without tackling inflation, informality, or economic stagnation is a half-measure. It risks becoming a political gimmick rather than a people-cantered solution.

The government must stop mistaking optics for impact. Because justice is not in how much you’re paid — it’s in whether that pay can truly sustain you.