New National Minimum Wage: Both futile and destructive

2-minute read
07 February 2024 | 16:59 CAT

The proposed National Minimum Wage hike for 2024. Photo/ BusinessTECH

Only some people are happy with the new National Minimum Wage Minister of Employment and Labour Thulas Nxesi announced on Friday, taking the minimum wage for a general worker from R25.42 to R27.58 per hour from 1 March.

Chief Executive of the National Employers Association of South Africa (NEASA),
Gerhard Papenfus speaks on Radio Islam International on the recently announced 8.5/ increase to the national minimum wage and its potential implications for employment in the economy.

Papenfus points out that Employment and Labour Minister Thulas Nxesi’s announcement of an 8.5% increase to the national minimum wage is based on the advice and recommendations of the National Minimum Wage Commission (NMWC).

According to him, the NMWC “ignored the input of numerous business institutions and trade unions who warned of the dire consequences of implementing further increases and the calls for the scrapping of the national minimum wage and simply proceeded with recommending the implementation of its own original proposals”.

Papenfus adds that how the NMWC reached its conclusion shows the “futility” of the public participation process leading up to its eventual recommendation.

He suggests that the solution lies in a growing economy, robust labour market arrangements, and a new approach to working.

Listen to the full interview on The Daily Round-Up with Moulana Junaid Kharsany.

Fuel Price Surge Looms as Global Oil Prices Spike

Neelam Rahim | neelam@radioislam.co.za 3-minute read | 12 March 2026 South Africans may soon face significant fuel price hikes as global oil prices climb sharply, raising concerns about inflation and increased living costs. Oil prices have surged to $110 per barrel...

University Capacity Crisis Sparks Calls for Parliamentary Inquiry

Neelam Rahim | neelam@radioislam.co.za 3-minute read 12 March 2026 Thousands of South African matriculants who achieved qualifying results for university admission are being left without opportunities to pursue higher education, highlighting a growing capacity crisis...

A Hushed-up Settlement

Rabia Mayet | rabiamayet@radioislam.co.za 12 March 2026 1-minute read The DA made explosive allegations at a media briefing yesterday, accusing the Gauteng Health Department of paying a confidential sum to silence a senior official facing disciplinary charges related...

Middle East tensions could drive fuel price increases, warns economist

Neelam Rahim | neelam@radioislam.co.za 3-minute read 05 March 2026 South Africans may currently be experiencing some relief at the pumps, with fuel prices hovering near a four-year low, but global geopolitical tensions could soon reverse the trend. Economist Dawie...

Passing Of A Struggle Stalwart

Rabia Mayet | rabiamayet@radioislam.co.za 05 March 2026 1-minute read South Africa loses yet another struggle hero with the passing of Mosiuoa Terror Lekota, who, after suffering from a long illness, succumbed in the early hours of Wednesday morning. COPE’s Teboho...

Iran–Israel tensions escalate as regional war fears mount

Neelam Rahim | neelam@radioislam.co.za 3-minute read 04 March 2026 Tensions between Iran, Israel and the United States have shifted from heated rhetoric to direct confrontation, raising urgent concerns about a wider regional war. Strategic US assets and allied bases...