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20 November 2017

Hon. Pravin Jugnauth

Minister of Finance and Economic Development
Ground Floor
Government House
Port Louis

Proposal of the C.T.S.P for Salary Compensation 2018

Sir

We are pleased to submit our proposal for salary compensation to be paid in 2018.

Introduction

- According to Mauritius Statistics, the inflation rate is below 3.6%. The calculation
of the inflation rate has been made in accordance with a basket of goods and
services that amounts to Rs 27,100 (2017 forecast) which has been determined in
the last Household budget survey.

- The average household expenditure represents a family of adults and 2 children with
an average of 1.75 earners.

- Thus 1.75 earner average expenditure = Rs 27,100

1 bread earner = 27,100 = Rs 15,485
1.75

- The rate of inflation that Mauritius Statistics has published is in relation to a wage
which is Rs 15,485.

- Therefore for a worker earning below Rs 15,485 monthly, the rate of inflation is
much higher.

- You have set an objective to eradicate poverty during your mandate. Eradication of
poverty can only be achieved if your economic system adopts proper structural
reforms for a proper distribution of wealth.

- For the last 3 decades our country has witnessed growth avec comme toile de fond
inegalit sociale. The gini coefficient data speaks for itself. The gap between
the very rich and the poor keep on increasing. With the Sithanen Mansoor reforms
as from 2006, the gap has increased considerably.
 - The LAlliance Lepep was elected by the people with the hope that your
government will bring more social justice. We are still with the hope that all
declaration of good intentions that we have been stuffed with will be implemented.

- We are witnessing a paradox, at the same time your government intends to eradicate
poverty, at the same time the number of WORKING POOR is increasing.

Since we have a relatively low inflation rate, the tripartite consultation will be
a golden opportunity for you, as Minister of Finance, to take corrective
measures to ensure that we are moving towards a proper distribution of
wealth through a politique de rattrapage in the Republic of Mauritius

The C.T.S.P. therefore, proposes the following: -

15,485 x 3.6 % = Rs 557.00

- An across the board increase of Rs 550 be paid to all employees.

- That all pensions, i.e, Basic Retirement Pensions and other Social Allowances be
increased by Rs 500.00

- That all employees earning less that Rs 10,000 shall be subjected to a Politique de
Rattrapage through the Negative Income Tax System.

We hope our proposal will be positively entertained.

Mr. Reeaz Chutoo Mrs. Jane Ragoo

President General Secretary