Transport and Works Minister, Dr. William Duguid, is calling on private sector businesses to give employees a pay increase.
He says since government has reduced corporation tax, employers should now be in a better position to pay employees more.
His comments come after the Barbados Workers’ Union and the Barbados Hotel and Tourism Association reached an agreement that will see employees in the tourism sector receiving a 5.5 per cent increase over a three-year period.
He says this move is a step in the right direction and other private sector entities should follow suit.
Speaking in Parliament as members debated the Income Tax (Amendment and Validation) Bill, 2018, Dr. Duguid says an increase in pay will strengthen the spending power of Barbadians, which will aid in the turnaround of the economy.