The Ministry of Labor, Public Service and Human Resource Development has issued a circular raising the minimum wage for unskilled workers in the private sector to 2,000 pounds.

This is a rise from roughly 250 pounds that workers in low grades and the unclassified staff had been earning.

The Undersecretary for Labor and Industrial Relations, Mary Hillary Wani, says the minimum wage agreed upon during meetings with the employers association and Workers’ Trade Union Federation last month.

The three parties say the rise is in response to the high cost of living.

The minimum wage for skilled laborers is 3,000 for starters. For the lower management, the minimum wage for starters is 4,000, while the middle management would be paid at least 6,000.

The circular says the wages for top management will be determined according to the academic qualifications, experiences, nature of work and the scope of the responsibility.

The circular, which was signed this month, backdates the starting date of the new pay rates to the first of February.

“This circular will be effective as from 1st of February, 2016 and to be implemented by all the  business bodies and establishments in the private sector,” it read.