Deputy president Cyril Ramaphosa has announced that the national minimum wage in South Africa has been set at R20 per hour or R3 500 per month for those that work a 40-hour week. The minimum wage for those who work a 45-hour week has been set at R3 900 per month. These rates will come into effect on 1 May 2018.
The deputy president made this announcement at the Imbizo Centre in Parliament in Cape Town. After he made the announcement Ramaphosa was quick to explainthat this new amount is still not a living wage. He said that this is a big step in the right direction especially for those that currently earn less than R3 500 per month. The step is even bigger when you consider that there is about 6,6 million workers than earn below that amount.
The deputy president’s briefing with journalists was aimed at providing details on the status of National Economic Development and Land Council (NEDLAC)’s Committee of Principals (CoP) discussions on labour relations and wage inequality.
The new minimum wage is set to benefit farm and domestic workers the most. Currently there is over half a million farm workers earning less that R20 an hour. Domestic workers are also set to benefit as they have always been exploited in South Africa. This is a sad reality when you consider that essential work they do to look after homes and the effort which goes into cleaning an entire house.
This announcement is a move in the right direction but considering the rate of inflation and that the new rates only come into effect next year shows we still have a long way to go. A lot still needs to be done to achieve economic equality.
Ramaphosa said that companies that cannot afford the national minimum wage can apply for exemption from government. In addition he also said the minimum wage would be evaluated from time to time to assess its impact on jobs.