Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - Seychelles (Ratification: 1978)

Direct Request (CEACR) - adopted 2018, published 108th ILC session (2019)

The Committee notes the observations of the Association of Seychelles Employers (ASE) and of the Seychelles Federation of Workers’ Unions (SFWU) regarding the application of Conventions Nos 26 and 99 (minimum wage fixing machinery) communicated with the Government’s reports. In order to provide a comprehensive view of the issues relating to the application of these Conventions, the Committee considers it appropriate to examine them in a single comment.

Articles 1 and 2 of Convention No. 26 and Article 1 of Convention No. 99. Scope of application. The Committee notes that, in reply to its previous request for information on the practical application of section 6 of the Employment (National Minimum Wage) Regulations 2007, which provides that the Minister in charge of employment matters may exempt any worker or category of workers from the application of these Regulations, the Government indicates that during the reporting period no exceptions were made in the application of this provision. The Committee also notes that, in reply to its previous request concerning the treatment of foreign workers, the Government indicates that the 2014 National Employment Policy adopted with ILO technical assistance includes a strategy on migration, foreign labour and localization with the aim of promoting equal pay for work of equal value regardless of nationality at all levels and that a national labour migration policy is under development.

Article 3(2) of Convention No. 26 and Article 3(3) of Convention No. 99. Participation of social partners in the operation of the minimum wage fixing machinery. The Committee notes that, in reply to its previous request on this matter, the Government indicates that a working group, consisting of the Ministry of Finance, the Central Bank and the National Bureau of Statistics, assesses the economic indicators in order to determine the inflation rate and advises the Government on the necessity for any increase in the minimum wage. The Committee also notes that, while section 40 of the Employment Act provides for consultations with social partners in the determination of the minimum wage, the observations from the ASE and the SFWU indicate that such consultations are not ensured in practice. The Committee therefore requests the Government to take the necessary measures to ensure that employers’ and workers’ organizations are effectively consulted in connection with the operation of the minimum wage fixing machinery and to provide information in this regard.

Direct Request (CEACR) - adopted 2012, published 102nd ILC session (2013)

Article 2 of the Convention. Scope of application. The Committee notes with interest the Government’s information that the Employment (National Minimum Wage)(Exemption) Order, 2008, which excluded non-Seychellois workers employed in the tourism or construction industry from the application of the national minimum wage, was repealed by the Employment (National Minimum Wage)(Exemption) Order, 2010. The Committee understands, however, that under the Employment (Wage Increase) Regulations, 2010, a 20 per cent wage increase has been granted except for non-Seychellois employees whose wage formula will be specified separately. Recalling that remuneration levels should be fixed according to objective factors such as the quantity and the quality of the work performed, the Committee requests the Government to further clarify how it is ensured that foreign workers receive equal remuneration with national workers when performing work of equal value. Moreover, the Committee reiterates its request for additional explanations concerning the broad discretionary power conferred upon the Minister of Employment and Human Resources, by virtue of section 6 of the Employment (National Minimum Wage) Regulations, 2007, to exempt any worker or category of workers from the application of the national minimum wage subject to such conditions as he/she may think fit, and the need to ensure that employers’ and workers’ organizations are duly consulted before any decision for exemption is taken.

Article 3(2). Minimum wage fixing machinery. The Committee notes the Government’s information that the national minimum wage is currently fixed by the Ministry of Finance, Trade and Investment in consultation with the Ministry of Labour and Human Resources Development. The Government also indicates that the consultation process with the workers’ and employers’ organizations was not lengthy due to the urgency for the Government to introduce the minimum wage, as a requirement of the Macro Economic Reform Programme set by the IMF. The Government further states that the social partners are kept informed of developments regarding this subject through the tripartite National Consultative Committee on Employment (NCCE) or other mediums. The Committee wishes to emphasize, in this respect, the fundamental importance of genuine consultations with the social partners for the effective operation of the minimum wage-fixing process. As the Committee has pointed out on numerous occasions, “consultation” has a different connotation from mere “information” and from “co-determination”. Consultation has to be meaningful in the sense that employers’ and workers’ representatives should be given a real opportunity to express their views and their views should be given appropriate consideration. The Committee considers that the principle of full consultation with and direct participation of representative employers’ and workers’ organizations in setting or revising minimum wages should apply at all times and that the implementation of an economic reform programme does not absolve the Government from its responsibilities in this regard. The Committee accordingly requests the Government to take all appropriate steps to ensure that employers’ and workers’ organizations are fully consulted and directly participate at all stages of the establishment, operation and modification of the minimum wage fixing machinery, as required under this Article of the Convention.

Article 5 and Part V of the report form. Application in practice. The Committee notes the Government’s information that the national minimum wage was last increased by the Employment (National Minimum Wage) (Amendment) Regulations, 2011 and is presently set at 21 Seychellois rupees (SCR) per hour for regular workers (approximately US$1.6) and SCR24.20 per hour for casual workers (approximately $1.8). The Committee also notes the sample copies of inspection visits carried out concerning minimum wage-related offences. The Committee would appreciate if the Government would continue supplying up-to-date information on the practical application of the Convention.

Direct Request (CEACR) - adopted 2008, published 98th ILC session (2009)

Article 2 of the Convention. Scope of application. The Committee notes the Employment (National Minimum Wage)(Exemption) Order, 2008, excluding non-Seychellois workers employed in the tourism or construction industry from the application of the national minimum wage. The Committee recalls that the Convention leaves to each ratifying State to decide, in consultation with its social partners, the trades or part of trades to which the minimum wage-fixing machinery should apply but contains no provision permitting the exclusion of workers from the coverage of the national minimum wage on the basis of characteristics such as nationality, sex, age, disability, etc. It also recalls that in the absence of any such provisions, the general principles laid down in other instruments have to be observed, and particularly those contained in the Preamble of the ILO Constitution which specifically refers to the application of the principle of “equal remuneration for work of equal value”. The Committee therefore requests the Government to explain how it is ensured, in view of the exemption Order, that non-Seychellois workers employed in the tourism and construction industries receive equal remuneration with Seychellois workers when performing work of equal value. The Committee also requests the Government to provide an indication as to the approximate number of foreign workers employed in the tourism and construction industry who are now deprived of the protective coverage of minimum wage legislation. Moreover, the Committee considers that the broad discretionary power conferred upon the Minister of Employment and Human Resources, by virtue of section 6 of the Employment (National Minimum Wage) Regulations, 2007, to “exempt any worker or category of workers […] from the application of the national minimum wage subject to such conditions as he/she may think fit”, needs to be reconsidered, particularly with view to ensuring that employers’ and workers’ organizations are duly consulted before any decision for exemption is taken.

Article 3(2). Minimum wage-fixing machinery. The Committee notes with interest the adoption of the Employment (National Minimum Wage) Regulations, 2007, which prescribe minimum hourly wage rates for workers with permanent, fixed-term, or part-time contract, and casual workers. The Regulations also fix the amounts of fines for failure to pay the national minimum wage. The Committee asks the Government to provide more detailed information, including copies of any relevant legal text, on the minimum wage-fixing process, in particular the manner in which employers’ and workers’ organizations participate in that process in equal numbers and on equal terms, as required by this Article of the Convention.

Part V of the report form. The Committee notes the statistical information provided by the Government concerning average earnings by sector and industry in 2007. It would appreciate if the Government would continue supplying up-to-date information, including, for instance, inspection results showing the number of minimum wage-related offences observed and sanctions imposed, the approximate number of workers remunerated at the minimum wage rate, copies of collective agreements fixing minimum wages for specific sectors or branches of economic activity, etc.

Finally, the Committee takes this opportunity to recall that, based on the recommendations of the Working Party on Policy regarding the Revision of Standards, the ILO Governing Body has decided that Conventions Nos 26 and 99 are among those instruments which may no longer be fully up to date but remain relevant in certain respects (GB.283/LILS/WP/PRS/1/2, paragraphs 19, 40). The Committee therefore suggests that the Government should consider the possibility of ratifying the Minimum Wage Fixing Convention, 1970 (No. 131), which marks certain advances compared to older instruments on minimum wage fixing, for instance, as regards its broader scope of application, the requirement for a comprehensive minimum wage system, and the enumeration of the criteria for the determination of minimum wage levels. The Committee considers that the ratification of Convention No. 131 is all the more advisable as Seychelles has already a statutory minimum wage of general application (and not only minimum wages for those workers employed in exceptionally low-paid trades where no arrangements for collectively negotiated wages exist, as prescribed by Convention No. 26). The Committee requests the Government to keep the Office informed of any decision taken or envisaged in this regard.

Direct Request (CEACR) - adopted 2007, published 97th ILC session (2008)

The Committee notes that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:

Articles 1 and 3 of the Convention. Further to its previous comments on this point, the Committee notes the Government’s indication in its last report that the President had recently requested the Government to take the necessary action to set up the minimum wage fixing machinery and establish a national minimum wage, while the Ministry of Social Affairs and Employment had been instructed to prepare, in consultation with the employers’ and workers’ organizations and other stakeholders, proposals as to how the system of minimum wages should work. The Committee hopes that the Government will take, without any further delay, appropriate steps pursuant to section 40(2) of the Employment Act, 1995 to give full effect to the requirements of the Convention, and ventures to suggest that the Government might envisage having recourse to the technical assistance of the Office. It asks the Government to keep it informed of any development in this regard.

Article 5 and Part V of the report form. The Committee notes that in its previous report the Government provided statistical data on the evolution of average monthly earnings during the period 1984–98 by sector and occupational category. Recalling that the fundamental objective of the Convention is to ensure to workers a minimum wage which mirrors the economic and social realities prevailing in the country and which can provide a decent standard of living for them and their families, the Committee wishes the Government to continue supplying information on the evolution of wage levels practised in the public and private sectors.

Direct Request (CEACR) - adopted 2003, published 92nd ILC session (2004)

The Committee notes the Government’s report.

Articles 1 and 3 of the Convention. Further to its previous comments on this point, the Committee notes the Government’s indication that the President has recently requested the Government to take the necessary action to set up the minimum wage fixing machinery and establish a national minimum wage, while the Ministry of Social Affairs and Employment has been instructed to prepare, in consultation with the employers’ and workers’ organizations and other stakeholders, proposals as to how the system of minimum wages should work. The Committee hopes that the Government will take, without any further delay, appropriate steps pursuant to section 40(2) of the Employment Act, 1995 to give full effect to the requirements of the Convention, and ventures to suggest that the Government might envisage having recourse to the technical assistance of the Office. It asks the Government to keep it informed of any development in this regard.

Article 5 and Part V of the report form. The Committee notes that in its previous report the Government provided statistical data on the evolution of average monthly earnings during the period 1984-98 by sector and occupational category. Recalling that the fundamental objective of the Convention is to ensure to workers a minimum wage which mirrors the economic and social realities prevailing in the country and which can provide a decent standard of living for them and their families, the Committee wishes the Government to continue supplying information on the evolution of wage levels practised in the public and private sectors.

Direct Request (CEACR) - adopted 2001, published 90th ILC session (2002)

The Committee notes the Government’s reports and the attached documents.

Articles 1 and 3 of the Convention. The Committee notes the Government’s indication that an Employment Task Force has been formed under the Ministry of Social Affairs and Manpower Development to study the purpose and objectives of a minimum wage-fixing machinery which will then be placed before the National Tripartite Employment and Labour Council (NTELC) for discussion with the social partners and other relevant stakeholders. The Committee also notes from the Government’s report that the Seychelles Workers Union is currently preparing a detailed paper on the establishment of a wage-fixing system to be submitted to the NTELC for discussion at its next sitting.

While taking note of the Government’s statement that there exist no formal minimum wage-fixing machinery in the country, the Committee is bound to observe that national legislation does provide for an institutionalized procedure whereby minimum rates of wages can be fixed in the form of either a national minimum wage for all workers or mandatory wages in respect of specific occupational categories. More concretely, the Committee draws attention to section 40(1) of the Employment Act, 1995 (Act No. 2 of 1995), which stipulates that the Minister of Social Affairs and Manpower Development may, after consultation with the unions, the employers’ organizations and such other representatives of workers of any category who are not members of any union whom the Minister considers it fit to consult, make regulations prescribing the statutory wages to be paid to workers by employers. The Committee understands, however, that the Government has not made use of this legislative arrangement and therefore no minimum wage regulations have been issued so far.

In this connection, the Committee recalls that by ratifying the Convention the Government has undertaken not only to ensure legislative conformity with the provisions of the Convention, but also to operate effectively a minimum wage fixing machinery in practice, while being free to decide its nature and form, especially by associating the employers and workers concerned in its functioning. The Committee hopes that the Government will take the necessary steps to give practical effect to the minimum wage-fixing system laid down in its labour legislation and would appreciate receiving copies of any ministerial regulations adopted pursuant to section 40(2) of the Employment Act, 1995, as well as copies of any collective agreements establishing minimum wage rates for specific categories of workers.

Article 5 of the Convention and Part V of the report form. The Committee notes the Government’s indication that although there exist no formal minimum wage-fixing machinery, it has been customary to set in the private sector minimum wages comparable to, and in some cases even higher than, those prescribed for government employees. The Committee requests the Government to continue to provide all available information on the evolution of the minimum wage rates applicable to workers in the public and private sectors, the approximate number of workers concerned, and the activities of inspection services with regard to the enforcement of the average national minimum wage norm currently in force.

Direct Request (CEACR) - adopted 1998, published 87th ILC session (1999)

The Committee notes the information provided in the Government's report in reply to its previous comments.

Article 1 of the Convention, in conjunction with Articles 3 and 5. The Committee notes the Government's indication that no tripartite wage-fixing committee has been established yet by virtue of section 40 of the Employment Act, 1995, and that there is no national statutory minimum wages. However, the Government states that it has prescribed an average national norm of SR1,900 per month for all its employees. The Committee also notes that the Ministry of Administration and Manpower has signed a collective agreement with the Seychelles Federation of Workers' Union.

The Committee recalls the obligation for the ratifying State, under Article 1 of the Convention, to create or maintain minimum wage fixing machinery for workers employed in certain of the trades or part of trades in which no arrangements exist for the effective regulation of wages by collective agreement or otherwise, and wages are exceptionally low. The Committee therefore requests the Government to indicate the measures taken or contemplated to ensure the establishment, in practice, of a minimum wage fixing system in accordance with Article 1 of the Convention. It also requests the Government to indicate to what extent the employers' and workers' organizations concerned have been fully consulted and associated in equal numbers and on equal terms in the operation of the minimum wage fixing system, as required by Article 3, paragraph 2(2) and (3), of the Convention.

Article 5, in conjunction with point V of the report form. Further to its previous comments, the Committee again requests the Government to provide: (i) the available data on the number and different categories of workers covered by minimum wage provisions; and (ii) other general information on how effect is given to the Convention in practice (for example, the results of inspections carried out (such as the number of violations of minimum wage provisions, the penalties imposed, etc.)).

[The Government is asked to report in detail in 2000.]

Direct Request (CEACR) - adopted 1994, published 81st ILC session (1994)

The Committee notes with regret that the Government's report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the following matters raised in its previous direct request:

The Committee noted that the labour inspection services and the competent services of the Ministry of Employment and Social Affairs are responsible for the enforcement of the Employment Act, including the provisions concerning minimum wages. In this connection, the Committee requests the Government to indicate the number of workers covered by the Wages Regulations as regards minimum wages (Article 5 of the Convention) and to supply general information on how effect is given to the Convention in practice by supplying, for example, extracts of the reports of the labour inspection services (Part V of the report form).

Direct Request (CEACR) - adopted 1993, published 80th ILC session (1993)

The Committee notes that the Government's report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the following matters raised in its previous direct request:

The Committee noted that the labour inspection services and the competent services of the Ministry of Employment and Social Affairs are responsible for the enforcement of the Employment Act, including the provisions concerning minimum wages. In this connection, the Committee requests the Government to indicate the number of workers covered by the Wages Regulations as regards minimum wages (Article 5 of the Convention) and to supply general information on how effect is given to the Convention in practice by supplying, for example, extracts of the reports of the labour inspection services (Part V of the report form).

Direct Request (CEACR) - adopted 1990, published 77th ILC session (1990)

The Committee notes, from the Government's last report, which was received in March 1990, that a new Employment Act was adopted in 1985 and that new Wages Regulations were adopted in 1987 after consultation with the trade unions and the Federation of Employers' Associations in accordance with section 46 of the above Act. The Committee will examine these texts at its next session.

The Committee notes, from the Government's report, that the labour inspection services and the competent services of the Ministry of Employment and Social Affairs are responsible for the enforcement of the Employment Act, including the provisions concerning minimum wages. In this connection, the Committee requests the Government to indicate the number of workers covered by the Wages Regulations as regards minimum wages (Article 5 of the Convention) and to supply general information on how effect is given to the Convention in practice by supplying, for example, extracts of the reports of the labour inspection services (Part V of the report form).