Reuters reports that the Department of Labour said on Thursday that Cabinet had approved draft legislation to introduce a national minimum wage (NMW) of R20 per hour from May next year.  

Deputy President Cyril Ramaphosa said in February that the new NMW would come into force next year, and Cabinet’s decision brings its introduction one step closer.  The NMW must still be approved by Parliament before it becomes law.  The ministry said the new wage legislation, as well as bills on basic employment conditions and labour relations, would help address labour instability and wage inequality.  Supporters of a NMW have argued that it could reduce inequality and stimulate growth as workers would spend more.  But critics say it could lead to increased unemployment as some employers would be unable to afford higher wage bills.

• A short report is at Moneyweb

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