South Africa's Minimum Wage Could Rise to R23/Hour, Public Called On to Submit Recommendations
- The Department of Employment and Labour is looking to raise the minimum wage for workers this year
- The National Minimum Wage Commission is calling for the minimum wage rate to be increased by over R2 per hour
- Some organisations have warned the government against increasing the minimum wage too high for businesses to afford
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JOHANNESBURG - The South African public has been called to make recommendations on what the minimum wage should be increased to by the Department of Employment and Labour.
On a yearly basis, the department reviews and assess the wage rate in accordance with the National Minimum Wage (NMW) Act. The Minister of Employment and Labour, Thula Nxesi, is then required to determine the new minimum age based on the proposals that have been submitted.
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BusinessTech reports that in March 2021, the minister adjusted the minimum wage to R21.69 per hour, however, the National Minimum Wage Commission is saying that the minimum wage should be taken up to R23 per hour and more than R20 per hour for domestic workers.
Associations say increasing the minimum wage could have negative effects
The National Employers Association of South Africa has cautioned against raising the minimum wage too high for employers to afford. The association says because it is illegal to pay someone less than the minimum wage, employers will have to retrench workers they can't afford to pay.
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The association adds that retrenchments have a ripple effect and end up affecting the South African economy.
Trade union Cosatu welcomes an increase in the minimum wage
The Congress of South African Trade Unions (COSATU) says it welcomes the proposal to increase the minimum by over R2 per hour for the year 2022.
The organisation says this increase will be most appreciated by domestic workers, who, for the first time, will be earning well over R20 per hour, according to The South African.
Cosatu would like for the new wage increase to be made law by 1 March, 2022.
Domestic workers could be getting a wage increase of R703
Briefly News previously reported that the South African public has been called to weigh in on the possibility of increasing the minimum wage for domestic workers starting next year.
Domestic workers do not earn the same minimum wage that has been established for the entire country and are currently only getting paid a minimum of R 19,09 per hour while the national minimum wage is R 21,69 per hour.
That means domestic workers were earning just R3 360 if they worked eight hours a day for an entire month.
An increase in the minimum wage will be in line with the promise made by President Cyril Ramaphosa during the local government elections to increase wages for women, reports News24.
Source: Briefly News
