Domestic Workers Entitled To Minimum Wage Act
“Domestic workers, whether full-time or part-time and living in or out of their employer’s home, are entitled to receive the minimum hourly wage rate of $16.40 as of 1 June 2023,” the Ministry said today.
A Government spokesperson said, “With the implementation of the national minimum hourly wage and considering the number of queries received from the public, employers and employees, the Ministry of Economy and Labour takes this opportunity to reiterate that domestic workers, whether full-time or part-time and living in or out of their employer’s home, are entitled to receive the minimum hourly wage rate of $16.40 as of 1 June 2023.
“Additionally, domestic workers that work more than 15 hours per week and are considered employees under the Employment Act 2000 are entitled to the rights conferred by that Act. These rights include vacation leave, sick leave, maternity and paternity leave, bereavement leave, rest days, meal breaks, overtime pay, public holidays, severance allowance and the like. For more information, please review the Guide to Working in Bermuda for an overview of employee rights under the Employment Act 2000.
“Under the Employment [Minimum Hourly Wage Entitlement] Act 2022 and corresponding Regulations, a domestic worker’s gross pay must add up to at least the minimum hourly wage of $16.40 for any pay reference period before an employer can begin making any deductions.
“Although under the direct remit of the Department of Labour, the change will impact policies and processes at the Department of Immigration.
“Section 7.9 – Live-in Domestic Employee [Private Home] will be amended to ensure the payment for domestic workers complies with the minimum wage of $16.40 per hour. While statutory deductions – health insurance, social insurance premiums, and payroll tax – are required, the gross minimum hourly wage payable to domestic workers cannot be less than $16.40. Additionally, employers are responsible for all of the employee’s statutory payments. Room and board must be calculated at $700.00 a month [$158.00 a week]. Also, the termination notice period from either party is to be the same. One month is considered the shortest reasonable period of notice.
“Work permit applications [for affected workers] submitted to the Department of Immigration on or after 1 June must include employment contracts [or the Statement of Employment section of the application form] which comply with the new minimum hourly wage. Failure to meet this requirement will result in the refusal of work permits.
“To avoid work permit applications being refused, employers must submit updated, amended employment contracts for current work permit holders and for work permit applications currently being processed and yet to be issued by 30 July 2023. If it is later found that employment contracts still need to be updated, the Minister may automatically refuse new work permit applications.
“All employment contracts [or Statements of Employment] must clearly indicate the hourly wage [do not include weekly/bi-weekly, monthly or annual salaries only]. Updated contracts must be placed in the Department of Immigration’s drop-box.
“Employers, employees, and their representatives who have any questions concerning the minimum hourly wage rate and applying it to domestic workers may contact the Department of Labour at 23 Parliament Street, from Monday to Friday between 8:45 am and 5:00 pm on 297-7716 or via email at departmentoflabour@gov.bm or the Department of Immigration at 30 Parliament Street on 246-8093.”
20-25….cost living requires .
Woo hoo! A PLP Government ordered pay rise for domestic workers who agreed a contract where the cost of accommodation was factored into their pay.
Sadly, their work permits will not be renewed. A new domestic worker will be employed whose contract does not include free accommodation as part of remuneration.