National minimum wage: Can you survive on less than R5k per month?

How much did you spend on groceries last month? Well, if the digits on your till slip weren’t enough to give you a slight heart attack, then consider yourself lucky.

Many South Africans have been consistently trimming their budgets over the past year to keep up with rising living costs, so the national minimum wage (NMW) announcement couldn’t have come at a better time.

The NMW for 2024 is set at R27.58 per hour, effective from 1 March.

READ MORE: This is the new national minimum wage from 1 March

Slim pay cheque

While a pocket top-up is much needed under the current economic landscape, the additional rands may only be a drop in the ocean.

So, based on the new rate, how much will the average worker take home after a month of hard work?

The Citizen calculated the average monthly pay a worker would get after working an 8-hour day on weekdays.

As the NMW dictates, a worker will earn R220.64 daily, which will amount to R1 103.20 at the end of each week.

At the end of the month, the worker’s wages will amount to R4 412.80.

While this may be an improvement from the R 4 067.20 total monthly wage in 2023, it’s not quite enough to sustain an average household.

The average cost of the household food basket is currently R5 324.86 – according to the January 2024 Household Affordability Index.

The monthly study conducted by the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) tracks prices of basic food items across 47 supermarkets and 32 butcheries.

The total monthly wages, as per the NMW, fall R912.06 short of the amount needed to afford the household food basket.

READ MORE: Low-income consumers still paying more for food – household food basket

Food inflation

The household food basket increased by R86.66 between December 2023 and January 2024. Furthermore, the same basket costs R407.44 more than it did a year ago.

Basic food items like rice, white sugar, beef and tomatoes increased by 5% or more. Potatoes flew a little higher, increasing by 13% in January. Maize meal, a staple for many households also increased by 2%.

With food inflation at an all-time high, many can’t help but wonder whether the minimum wage will make much of a difference in a tough economy.

ALSO READ: ‘Not everyone is happy with new national minimum wage’

Cosatu

Meanwhile, the Congress of South African Trade Unions (Cosatu) has welcomed the new NMW, calling it a positive increase.

“This increase helps protect the value of the NMW and workers’ ability to take care of their families from inflation… It will provide relief to more than six million workers earning within the NMW range,” Cosatu said in a statement.

Cosatu also said it was pleased with the progress made since the NMW was first implemented in 2019.

“Today it is R27.58 and by 2025 should reach R30 an hour. Domestic workers’ wages have increased from R15 and farm workers R18 in 2019 to being equalised with the NMW today. This is a far cry from the poverty wages farm and domestic workers were paid a few years ago, at times as little as R6 an hour.”

ALSO READ: Conundrum of national minimum wage and unemployment