‘Pay a monthly living wage of R12,000 to R15,000 to prevent worker poverty’

Some employed South Africans are grinding out a living in poverty because they are underpaid in relation to the cost of living, a lobby group says.

Professor Ines Meyer of the Living Wage South Africa Network said the concept of a living wage looks at what a person needs to subsist with a measure of dignity. This requires sufficient income for an individual and their family to afford the basic necessities of life, have something over for savings, and be prepared for emergencies.

Meyer's research, including surveys with workers, pinpoints the optimal living wage organisations should adopt at between R12,000 and R15,000 a month.

While companies may see such figures as an unwanted loss to their businesses, she said there are many overriding benefits.

These include retaining the patronage of consumers who favour ethical companies that share their value of an equitable world.

“In addition to goodwill, lifting workers out of poverty has been shown to grow consumer markets.

“Companies also experience less absenteeism, greater employee engagement and increased productivity.

“Worker poverty can adversely affect the entire organisation, including profits, so early adopters of a living wage initiative stand to benefit sooner and win a greater share of the market.”

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