In a recent statement, José Ignacio Paliza, the Dominican Republic’s Minister of the Presidency, highlighted the potential benefits of salary indexation as a mechanism to enhance the purchasing power of workers, particularly the middle class. However, he stressed that such measures must not negatively impact the nation’s most vulnerable populations. Speaking after a meeting of the PRM Executive Directorate on Friday, Paliza underscored the importance of balancing economic reforms with social equity. The proposed salary indexation is part of a broader government reform initiative introduced last year to address persistent inflation and improve family incomes. Paliza acknowledged the challenge of compensating for potential revenue losses to the State but firmly rejected suggestions to fund the initiative by cutting subsidies or social programs. He pointed out that these programs support over 700,000 Dominicans and have been instrumental in reducing poverty to historic lows. Paliza’s remarks reflect the government’s commitment to fostering economic growth while safeguarding social welfare.
Paliza backs salary indexation but warns it shouldn’t harm the poor
