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.

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