Government, Unions, and Employers in Discussion

According to Statistics Mauritius forecasts, the inflation rate for 2025 will reach 3.7%, based on the latest available data. This figure served as the basis for discussions at the tripartite meeting held on November 26 in Port Louis, chaired by the Minister of Labour and Industrial Relations, Reza Uteem.

Around the table, representatives from the government, the private sector, and unions discussed the planned wage adjustments for 2026.

Employers described a tense economic climate. Several companies are experiencing financial difficulties and are struggling to absorb new expenses. According to them, a sharp increase in wages would raise production costs and threaten the survival of some small and medium-sized enterprises.

Employers’ representatives also fear an impact on consumer prices, which would further weaken household purchasing power.

For his part, Reza Uteem reiterated the measures included in the 2025/2026 budget to support SMEs and export-oriented sectors. The Minister encouraged constructive dialogue, capable of preserving both economic balance and social justice.

The unions, for their part, emphasized the need for fair compensation tailored to the rising cost of living. They dispute the estimates from Statistics Mauritius, arguing that they do not reflect the reality of the consumer basket. According to them, some basic necessities have seen a more significant increase. Union representatives are demanding uniform compensation, accessible to all workers, including those whose salary exceeds Rs 50,000 (USD 1,090).

Meeting participants now have until December 1st to submit their final proposals. Following this, the Ministries of Labour and Finance will analyze the data collected before organizing further consultations. This next meeting will determine the final amount of the wage compensation, in a climate where social expectations and economic constraints clash but are still seeking a point of equilibrium.