Employment stakeholders across the country are divided almost down the middle on whether to increase the national minimum wage. The National Minimum Wage Commission on Thursday released its annual review of the national minimum wage (NMW). More than 400 stakeholders were consulted, with the public having until 16 January to comment before the commission makes its final recommendation.
The NMW increased by 4.4% earlier this year and has increased by 43% from the hourly minimum rate in 2019. The annual review process involves considerations from local stakeholders as well as comparisons with international standards. The commission stated that an estimated 5.5 million South Africans were currently employed at the minimum legislated rate or lower, although enforcing compliance was a continued challenge.
Respondents came in the shape of 35 written submissions from the Department of Employment and Labour (DEL), three from trade unions and 399 from organisations and individuals representing civil society. The report confirmed that opinions were divided on the matter, stating that 54% of those who provided inputs agreed with a NMW increase, while 46% disagreed. “Data suggests that support for the national minimum wage tends to be strongest in formal, higher-revenue industries that can absorb wage increases, while it is weakest in labour-intensive, lower-revenue industries,” the report states.
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“The majority — 66.4% — believed that the current national minimum wage is enough to meet basic needs, while 33.6% felt it is not sufficient,” it adds. The report cited the Kaitz index, which measures a country’s minimum wage relative to its national average.
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