South Africa’s commission tasked with the responsibility of proposing what the lowest rate of pay in the country should be, was expected to announce 2023’s wage threshold in December. But minimum wage workers in the country will have to wait a bit longer.
Ever year in December, the National Minimum Wage Commission releases its draft plan on the medium-term targets for the national minimum wage (NMW). Thereafter public comments are accepted on the matter and a final decision is reached and announced, usually in March.
However, this time around, the commission did not release any numbers, but a general statement.
Written in the Government Gazette, the commission said that it has deliberated on the issue and proposes that the medium-term target should be the following:
“All wage-earning workers must earn enough to maintain a decent standard of living, defined as sufficient to support themselves and their families at a level that is both socially acceptable and economically viable.
“The target should ensure that the value of the national minimum wage does not decline relative to the median wage.”
Impact on the sector
This comes after several interested parties, including members of the agricultural sector called on the wage commission to think twice and limit any increase to an inflation-related increase.
Agri SA’s executive director, Christo van der Rheede, is of the view that government should sign off on an increase that improves workers’ lives and protects Mzansi’s farming sector.
“The sector has faced significant headwinds in recent years which threaten the viability of many farms,” said Van der Rheede.
“Agri SA also recognises the cost pressures on all consumers in South Africa. And therefore, while the need for an increase is clear, it needs to be sustainable for the country’s farming operations to ensure food security for consumers.”
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Minimum wage workers under pressure
In the meantime, thousands of workers including those who work on Mzansi’s farms, do not earn enough to secure their own food.
Mervyn Abrahams, programme director of Pietermaritzburg Economic Justice and Dignity, previously told Food For Mzansi that many minimum wage earners did not earn enough to survive.
Abrahams said that in November the maximum NMW for a general worker was R4 081.44. This was for 22 days of work on an eight-hour shift.
This, while the November 2022 cost of a basic nutritional food basket for a family of four persons was R3 287.44.
“On our calculations, using Pietermaritzburg-based figures for electricity and transport, and the average figure for a minimum nutritional basket of food for a family of four, puts electricity and transport taking up 58,1% of a worker’s wage.”
This amounted to roughly R2 371.50 spent on electricity and transport alone. Meanwhile, food is bought after monies for transport and electricity have been paid for or set aside. This leaves only R1 709.94 for food and everything else.
Since the issue is of national importance, the National Minimum Wage Commission has invited public submissions concerning the medium-term target.
By no later than 31 January 2023 public comments should be sent to the directorate of employment standards at:
- Department of employment and labour, Private Bag X117, Pretoria, 0001
- or to nmwreview@labour.gov.za
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