The government’s pledge to increase the national minimum wage will “distort the economy,” said opposition party at a recent press conference in Thimphu.
This potential effect of the wage rate comes partly from the government’s confusion on the matter, added the opposition.
It also pointed out that there are two types of wage rates in the country. One is the national minimum wage rate while the other is national workforce wage rate.
The former is for anyone working in the country irrespective of the nationality whereas the latter applies only to Bhutanese nationals.
“If you are going to increase Nu 125 of the national minimum wage rate to Nu 450, it is going to benefit the foreign workers, not Bhutanese. That is why I am saying it is going to distort our economy. It will have huge repercussions on our economy,” cautioned the Member of Parliament from Panbang Constituency in Zhemgang, Dorji Wangdi.
Despite following government’s statements on this pledge from the election period till the parliament sessions, the opposition is still confused over which one of the two wage rates the government is talking about.
“That time prime minister said the existing wage rate is Nu125 and that the government will raise it to Nu 450. In this case he is talking about national minimum wage rate. But in the subsequent statement, he was also talking about the national workforce wage rate,” told Panbang MP to the local media.
The opposition also said the increasing national wage rate will have legal implications.
“If you are convicted and have to pay in lieu of imprisonment, it will be a heavy burden. For instance, let’s consider at least two to three years or less than 12 months of imprisonment. For that, the thrimthue will be Nu 450 times the minimum years of sentence. It will be a huge amount. Moreover, increasing number of people is coming in conflict with the laws,” said MP Ugyen Wangdi of Dramaedtse-Ngatshang Constituency in Monggar.
The national minimum wage rate was increased from Nu 100 to Nu 125 in 2010. On the other hand, the national minimum wage rate for the national workforce varies between Nu 215 and Nu 324.
