Cabinet approves R20 an hour national minimum wage

Parliament must still approve National Minimum Wage Bill.
Minimum wage expected to help address labour instability and wage inequality. Picture: Bloomberg

The South African cabinet has approved draft legislation to introduce a minimum wage of R20 ($1.43) per hour from May next year, the Department of Labour said on Thursday.

Credit ratings agencies have said a minimum wage could help stabilise the labour market and reduce the number of costly strikes in Africa’s most industrialised economy.

Deputy President Cyril Ramaphosa said in February that the new minimum wage would come into force next year, and cabinet’s decision brings its introduction one step closer. 

The National Minimum Wage Bill must still be approved by South Africa’s parliament before it becomes law, the ministry said in a statement.

The ministry said the new wage legislation, as well as bills on basic employment conditions and labour relations, would help address labour instability and wage inequality.

More than two decades after the end of apartheid in 1994, South Africa’s economy is still characterised by deep inequality and high levels of unemployment.

Supporters of a minimum wage say it can reduce inequality and stimulate growth as workers can spend more. But critics say it could lead to increased unemployment as some employers will be unable to afford higher wage bills.

($1 = R13.9736 )

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Wonder how my gardener is going to take this new law when I pare his wages back to say R 22.00 per hour. Also won’t be able to help him out by saying work more hours to gain the same wage as this will run foul of the law as it could violate the basic conditions of emplyment

my thoughts exactly. my gardener will have to find piecework for 2 days a week.
minimum wage in Malawi is R487 / month.
Unemployment number will keep going up , ANC geniuses.

OK so – what is another couple of thousand jobs lost when you can have a “moral high ground” ne!

End of comments.

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