Africa-Press – Cape verde. The General Labor Inspectorate warned at the beginning of the month that the new national minimum wage is already in force, standing at 17 thousand escudos for the private sector and 19 thousand escudos for the Public Service. Despite representing progress, workers and businesspeople differ in their opinions about its sufficiency given the cost of living and sustainability challenges for companies.
The new national minimum wage is a measure that results from an agreement reached in August 2024, during a meeting between social partners and the government, which determined the increase of the national minimum wage from 15 to 17 thousand escudos in the private sector and to 19 thousand cruzeiros in public administration.
The Minister of Finance and Business Development, Olavo Correia, highlighted at the time that the increase represents an increase “over 50%” in relation to the 2016 values, highlighting the goal of reaching 20 thousand cruzeiros between 2026 and 2027. “What we are What needs to be done is a substantial improvement in the national minimum wage, giving an indication that we have to value the wages of those who work,” he said.
The economic context also influences this debate. The Union Budget for 2025, worth R$98 million, was approved last December and reflects an effort to maintain financial balance, with 82.5% of resources generated internally.
Reactions
Despite the increase, voices such as that of the president of the Association of Domestic Workers of Cape Verde, Maria Gonçalves, consider that the new values are still not enough to keep up with the cost of living in the country, advocating stricter monitoring and measures that ensure compliance effective implementation of the legislation.
Maria Gonçalves reacted to the increase in the minimum wage, which has already come into effect, considering that, despite being a step forward, the amount is still insufficient to keep up with the exponential increase in the cost of living in the country.
“For our reality, it is clear that the minimum wage should already be around 20 thousand cruzeiros. Anyone can see the exponential increase in prices, from food to transportation. Although we recognize the progress with the current increase, it is crucial to work to reach a level where the salary keeps up with the cost of living”, said Maria Gonçalves in an interview with Expresso das Ilhas.
The leader recalled that, in 2022, the authorities announced that they were working to reach 20 thousand escudos as the minimum wage. However, he considers that, in 2025, the established value is insufficient to cover the population’s basic expenses.
Another point highlighted by Maria Gonçalves is the lack of supervision in compliance with the law. “Many employers do not comply with legal requirements regarding the minimum wage because they know that there is no one to force them to do so. The inspection is inefficient, and the General Secretariat of Labor has not been functional”, he criticized.
For the association’s leader, it is necessary to implement practical measures, such as mandatory payment of salaries through banks and the issuing of payment slips, to ensure that the law is complied with.
The precarious working conditions of domestic workers were also a topic addressed during the interview in which the leader of the Domestic Workers Association of Cape Verde expressed her outrage at the lack of respect for the work of domestic workers.
“There are employers who ignore the value of their employees’ work and justify this by saying that if they are forced to pay the minimum wage, they would rather lay off their workers. We, at the Domestic Workers Association of Cape Verde, have a clear position: if an employer is unable to pay a decent wage, it is better not to hire them,” she said, condemning practices that she considers exploitative and inhumane.
Maria Gonçalves also highlighted that less than a quarter of domestic workers are registered with the National Institute of Social Security (INPS), which leaves them without social protection, access to retirement or other basic guarantees.
“If not even this basic obligation is monitored, what can we expect from compliance with other laws?” he asked.
In addition to the lack of social protection, Maria Gonçalves highlighted the impact of economic and social difficulties on the mental health of female workers.
“The salary nowadays doesn’t cover expenses. Just look at the price of the bus, food, house rent. Many people, in order to save money, walked to work, but with the increase in vandalism and insecurity, this option is no longer viable,” he lamented.
The President called on the Government to implement more rigorous and frequent inspections, ensuring greater efficiency of the General Secretariat of Labor.
“There is excessive slowness in legal procedures. When there is a complaint, the process is slow and bureaucratic, making it difficult to apply the laws. It is essential to act urgently to protect the rights of workers and ensure decent working conditions,” she concluded.
AJEC
The president of the Young Entrepreneurs Association
Cabo Verde’s Minister of Agriculture (AJEC), Lenine Mendes, explained that many companies associated with AJEC will not feel the impact immediately, as they already pay salaries higher than the new minimum wage. However, he stressed that the impact is not uniform.
“Most of our member companies will not feel this impact immediately, because they already pay wages above the minimum that comes into effect now. However, it is important to recognize that impact assessment is complex and depends on factors such as the sector of activity and location. This increase directly affects the costs of companies, especially those that employ a large number of employees. On the other hand, increasing the minimum wage empowers employees, resulting in greater purchasing power. This can benefit goods and services companies, creating a positive cycle of consumption and economic growth.”
Sustainability
When asked about the ability of young companies to support the increase without compromising sustainability, this person in charge points out that “for most young companies, it will be possible to support this increase. But we have to admit that for some, especially those operating on very thin profit margins, it will be a significant challenge. Companies in the restaurant, retail and services sectors, where margins are traditionally low, may feel the impact more intensely.”
As for strategies to deal with additional costs, Lenine Mendes suggested a multi-faceted approach, where young entrepreneurs can adopt several measures to deal with costs.
“One is to review internal processes to find areas where you can cut costs without compromising quality. Another is to implement technologies that reduce the need for labor in repetitive tasks, increasing efficiency. Furthermore, adjusting the prices of the products or services offered, but in a transparent way, so that customers understand the added value, can be a viable solution.”
Government Support
Regarding the role of the government and financial institutions, Lenine Mendes was emphatic in stating that reducing bureaucracy is more important than creating new programs.
“There is no need to create new programs, subsidies or incentives. What is needed is to reduce bureaucracy in those that already exist and facilitate timely access for companies that need them. Today, many financial institutions and the government do not speak the same language, and the businessman is caught in the middle, like a ‘ping-pong ball’. Providing access to free or reduced-cost consulting to help companies find customized solutions to their challenges would be a key measure. In addition, the government should conduct studies on the impact of increasing the minimum wage and adjust policies as necessary.”
With the government’s goal of reaching a minimum wage of 20,000 cruzeiros by 2027, Lenine Mendes advised business owners to plan ahead. This manager believes that, despite the challenges, the salary increase is a necessary measure, but it must be accompanied by improvements in basic services so that the impact is truly felt by workers.
“Companies should start now to put together budgets that include salary increases, allowing them to adjust gradually. Investing in employee training to improve efficiency and productivity will also be crucial. Furthermore, practices that reduce operating costs, such as the use of renewable energy, can be fundamental to maintaining sustainability. Raising the minimum wage is important, but without improvements in health, education, housing, energy and transportation, employees will not feel this increase in a meaningful way. Salary alone does not resolve the issue; you need to increase your overall quality of life. I even think that 20 thousand escudos is insufficient for the cost of living in Cape Verde.”
The president of AJEC also warned about the flight of talent. “Ask a young person if he prefers a contract in Cape Verde for one hundred thousand escudos or a salary of 900 euros in Europe. Most people don’t think twice about leaving the country. This is because the problem is not just in salaries, but in the quality of life and benefits that they and their families can find in the long term.”
Despite the challenges, Lenine Mendes believes that increasing the minimum wage can bring long-term benefits, if it results in greater purchasing power and boosts the economy. Furthermore, the president of AJEC also argues that if this increase allows consumers to have greater purchasing power, companies can benefit from a greater demand for products and services, creating a more favorable environment for both employees and employers..
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