Explainer: National Minimum wage becomes law, but what now?

Explainer: National Minimum wage becomes law, but what now?

- The National Minimum Wage Bill was signed by President Ramaphosa not too long ago and will take effect on a date he is yet to announce

- The minimum wage is now R20 an hour - about R3 500, depending on hours worked

- The president says the new minimum wage will not end income inequality yet but will make a difference

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President Ramaphosa recently signed the National Minimum Wage Bill which will raise the income of about 6 million South Africans who are earning less than R3 500 a month.

The bill aims at lowering inequality in income in South Africa's labour market.

As reported by The South African, the National Minimum Wage Act will kick in on a date the president is yet to announce.

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According to the new bill, the minimum wage is now R20 per hour, roughly R3 500 a month depending on hours worked.

The Presidency gave a statement on the new bill:

The President’s signing of the new law comes four years, to the month, after the National Economic Development and Labour Council (Nedlac) first began deliberations on the protection of low-paid workers, fair and effective competition in the labour market, and the challenges of labour instability, caused by violent strikes and the duration of strikes and wage inequality.

There will be a phase-in period for care workers, domestic workers, forestry workers, farm workers, and the welfare sector.

The bill is welcomed by low-income workers in South Africa, as they have been hoping for this for a long time.

Briefly.co.za reported that the R20 minimum was suggested ages ago, but making it was only now made official.

The president stated that the new bill will not put an end to income inequality yet, but gives a strong foundation to advance the living conditions of South Africans.

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Source: Briefly.co.za

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