San Agustin introduces measure tying Guam’s minimum wage with consumer price index
BY SKYLER OBISPO
Journal Staff
A measure introduced into the 38th Guam Legislature aims to set a mechanism to adjust Guam's minimum wage with the island's Consumer Price Index.
Introduced by Sen Joe S. San Agustin at the beginning of this legislature’s term, he said in a Nov. 14 statement the measure is about fairness and dignity, giving more financial stability to families and maintaining the purchasing power of Guam's minimum wage workforce.
“We've given breaks to our business sector and we know we're not seeing prices drop. The time to support our hard workers has come,” he said.
San Agustin was also the author of Bill 136-35 in 2019 that increased Guam’s minimum wage from $8.25 an hour to $9.25.
Sen. Joe S. San Agustin introduced Bill 4-38 on Jan. 13 which would tie Guam’s minimum wage with the average CPI. Photo by Skyler Obispo
The bill would add a new section to Article 1, Chapter 3, Title 22 of the Guam Code Annotated in which every Dec. 31, the Guam Department of Labor or the Bureau of Statistics and Plans will provide a calculation on the adjusted minimum wage rate determined by the fiscal year CPI average and the rate of inflation.
The adjusted rate will be calculated to the nearest 25 cents using Guam’s CPI or a successor index, for twelve months prior to each Dec. 1 as calculated by BSP or GDOL.
The adjusted rate would then take effect the following Mar. 1.
However, if the average CPI is negative that fiscal year there will be no increase or decrease in the minimum wage.
“The minimum wage of Guam will be either the local adjusted rate based on the calculation given by BSP or DOL that is inclusive of the CPI and inflation or the federal minimum wage rate, whichever is greater,” according to the legislative text.mbj
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