Seychelles Takes First Steps Toward Evidence-Based Living Wage

The country's first National Consultation Workshop on Living Wage Estimation was held in July 2026, following a Cabinet decision to introduce a living wage framework that reflects the everyday costs faced by workers and their families.

Seychelles has taken a major step towards developing its first evidence-based living wage estimate, bringing government officials, employers and workers together for a national consultation supported by the International Labour Organization (ILO). The country's first National Consultation Workshop on Living Wage Estimation was held in July 2026, following a Cabinet decision to introduce a living wage framework that reflects the everyday costs faced by workers and their families.

The workshop was organised by the Ministry of Finance, Economic Planning and Trade, the Ministry of Employment and Human Resource Planning, the National Bureau of Statistics (NBS) and the ILO. Discussions focused on how Seychelles can calculate a credible living wage using national household data while ensuring employers, workers and government representatives remain involved as the process develops.

Living wage will be based on real household costs

The ILO presented its methodology for estimating a living wage, explaining how food, housing and other essential expenses can be used to calculate the income needed for a decent standard of living. The approach relies on credible national data, transparency and regular reviews so estimates can respond to changes in prices and household spending.

The National Bureau of Statistics is playing a central role through its Household Budget Survey data. Its work examines household expenditure patterns, food consumption and caloric requirements alongside housing expenses and other essential non-food costs, providing a picture of what families need to meet basic needs.

Participants were also introduced to the difference between a living wage and a statutory minimum wage. ILO experts stressed that the proposed living wage estimate is intended to provide evidence for policy discussions and negotiations rather than automatically replacing Seychelles' existing legal mechanisms for setting wages.

Seychelles currently has a national minimum wage of SR40.95 an hour for non-casual workers, equivalent to gross monthly minimum pay of SR6,210.75 for someone working a 35-hour week. A living wage calculation could give policymakers and social partners another benchmark for examining how those earnings compare with the actual cost of maintaining an acceptable standard of living.

High import dependence adds pressure to household budgets

The country's economic structure makes the cost-of-living debate particularly important. Seychelles imports more than 90 per cent of its goods and depends heavily on tourism, leaving its small island economy vulnerable to changes in international prices and external economic conditions that can quickly affect household purchasing power.

Lower-income families can feel these increases most sharply because essentials account for a larger share of their spending. Government figures show the number of households receiving welfare assistance more than doubled between 2022 and 2025, adding another reason for policymakers to examine the relationship between wages, living costs and social protection.

Principal Secretary for Economic Planning Elizabeth Agatine said living wage estimation forms part of the Government's wider work to support the social and economic well-being of workers and their families. UN Resident Coordinator for Seychelles and Mauritius Lisa Singh also expressed support for a nationally owned process built through inclusive consultation and ILO technical assistance.

The ILO delegation held separate discussions with the Agency for Social Protection and several government ministries during its wider mission to Seychelles, examining how a living wage benchmark could work alongside the country's existing social protection system.

First estimate will be updated with newer data

Technical work is already underway on an initial living wage estimate using information from the 2018 Household Budget Survey. Feedback collected during the July workshop will be incorporated as the estimate is finalised, giving participants an opportunity to influence how national circumstances are reflected in the calculation.

The figure will not remain fixed to older household information. Once results from the 2024–2025 Household Budget Survey become available later in 2026, the initial estimate will be recalibrated using the newer data, providing a more current picture of household spending and living costs.

Principal Secretary for Employment and Human Resource Planning Susan Morel said further consultations will take place as the technical work progresses. That continuing dialogue will give workers, employers and government representatives another chance to examine the evidence and discuss what a living wage could mean in practice.

For Seychelles, the process is ultimately about establishing a locally grounded measure of what workers need to live on, while keeping decisions about wage policy within the country's existing institutions and social dialogue.