Minimum wage boosts millions

10 February 2017 - 09:16 By Ernest Mabuza
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Image: Gallo Images/iStockphoto

The national minimum wage of R3,500 a month will improve the earning power of just over 6million workers in a multitude of sectors.

However, it could take up to two years for domestic and agriculture workers to benefit after the countrywide minimum wage comes into effect next year.

Parties to Nedlac - excluding Cosatu - signed the agreement on the national minimum wage on Wednesday.

A minimum wage of R20 per hour, or R3,500 a month, for a 40-hour week takes effect no later than May next year.

Current statistics show that 6.2million workers, or 47.3% of the workforce, currently earn below the proposed minimum R3,500 per month.

This includes 90.7% of domestic workers, 84.5% agricultural workers, 54.6% of construction sector workers and 48.2% of wholesale and retail workers.

Statistics SA, in its 2014 report on labour market dynamics, said that 60% of workers in the clothing, textile, leather and furniture manufacturing sectors earned R3,500 per month.

A small proportion of workers in the electricity, gas and water supply industry, and in mining, currently earn below the proposed minimum wage.

Nedlac partners agreed that domestic workers would get 75% and agricultural workers 90% when the measure was introduced.

The wages to be paid to the domestic workers are currently set by the Department of Labour.

For the 2016-17 year the department set the wages for domestic workers at R2,205 to R2,422 a month for employees who work more than a 27-hour week.

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