VIDEO: CNMI Businesses Brace for Minimum Wage Increase

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Saipan – CNMI employers are bracing for a 50-cent minimum wage increase on Sept. 30, after getting a reprieve last year.

Saipan Chamber of Commerce president Alex Sablan told Saipan Tribune that the local economy is “improving” so businesses can sustain a minimum wage increase this year. 

Last year, the Chamber asked for—and received—a reprieve from the 2013 50-cent minimum wage increase through Delegate Gregorio Kilili Sablan and Gov. Eloy Inos’ help.

The CNMI’s current minimum wage is $5.55 an hour. This will increase to $6.05 an hour on Sept. 30 this year and on Sept. 30, 2016, and every year thereafter until it reaches the federal wage floor of $7.25 an hour.

Meanwhile, employers of Philippine nationals working in the CNMI must start withholding and paying Social Security and Medicare taxes under the Federal Insurance Contribution Act or FICA starting Jan. 1, 2015.