While some have welcomed the increase of the National Minimum Wage (NMW), some concerns have been raised about the above-inflation hike and the negative impact it could have on some sectors.
Effective from 1 March, farm and domestic workers will have to be paid a minimum wage of R25,42 per hour – a R2,23 hike from last year’s minimum wage.
For workers employed on an expanded public works programme, the minimum wage is set at R13, 97 per hour.
Employment and Labour Minister Thulas Nxesi said the cleaning sector in the metropolitan areas will enjoy R27,97 while for the rest of the country it is R25,50.
“The National Minimum Wage Act was agreed to with the aim of protecting low-earning workers in South Africa and providing a platform for inequality reduction,” said Nxesi.
He said these workers are generally unorganised and vulnerable, and without the introduction of the act, they would have continued to ‘endure exceedingly low wage levels and poverty’.
The above-inflation wage increase has however been labelled by the farming sector as ‘a threat to food security’ and a move that could eventually, affect consumers.
“Agri SA is alarmed by the announcement of a 9, 6% increase in the national minimum wage,” said Johan Wege, chairperson of Agri SA’s centre for excellence on labour.
Wege said this will further strain already hard-pressed farmers.
“As the sector battles to contain the costs associated with load-shedding, crumbling infrastructure and high input costs, this increase will further undermine food security and put much-needed jobs on the line,” he said.
The Congress of South African Trade Unions (Cosatu) has backed the decision saying it will be a relief for the ‘six million workers earning at the NMW level, in particular farm, domestic, retail, hospitality, construction, cleaning, security, and petrol attendants’.
“This will help cushion their buying power and their ability to care for their families.
“It will also inject badly needed stimulus into the local economy spurring growth and helping to sustain and create jobs,” said Cosatu spokesperson, Sizwe Pamla.
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